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Classify Each of the Following Items into One of the Seven

Question 32

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Classify each of the following items into one of the seven categories of financial assets relevant for financial reporting purposes. Select the category that best suits the situation given.
 Financial asset category relevant for  financial reporting purposes  Investment in bonds maturing in 30 years Investment in bonds maturing in two years.  Management made the purchase to invest idle  cash until after two years, when it make a  major capital expenditure.  Investment in 900,000 shares of Hot. Corp. a  public company with 2 million shares  outstanding,  Purchase of 600 shares of Delicious Treats, a  private company with 1,000 shares  putstanding, \begin{array}{|ll|cc|} \hline & & \text { Financial asset category relevant for} \\ \text { } & &\text { financial reporting purposes }\\ \hline \text { Investment in bonds maturing in 30 years } &\\ \hline \text {Investment in bonds maturing in two years. } &\\ \text { Management made the purchase to invest idle } &\\ \text { cash until after two years, when it make a } &\\ \text { major capital expenditure. } &\\ \hline \text { Investment in 900,000 shares of Hot. Corp. a } &\\ \text { public company with 2 million shares } &\\ \text { outstanding, } &\\ \hline \text { Purchase of 600 shares of Delicious Treats, a } &\\ \text { private company with 1,000 shares } &\\ \text { putstanding, } &\\ \hline \end{array}

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