Investments can be classified as:

Question

Quizplus · Accepted Answer

All of the choices are correct as these are the four main classifications of investments recognized under generally accepted accounting principles (GAAP). Trading securities are investments that are held with the intent of being sold in the near future for a profit, held-to-maturity debt securities are investments that a company has the intent and ability to hold until maturity, available-for-sale debt securities are investments that a company may sell at any time but are not intended to be held until maturity, and available-for-sale equity securities are investments in shares of stock that a company may sell at any time.

Investments Can Be Classified As