Investments in debt securities that the company actively manages and trades for profit are referred to as short-term debt investments in:
A)Available-for-sale securities.
B)Held-to-maturity securities.
C)Trading securities.
D)Realizable securities.
E)Liquid securities.

Question

Quizplus · Accepted Answer

Short-term debt securities that the company actively manages and trades for profit are referred to as trading securities. Option A, available-for-sale securities, refers to debt securities that are not actively managed and may be sold if the company needs cash. Option B, held-to-maturity securities, refers to debt securities that the company intends to hold until maturity. Option D, realizable securities, is not a commonly used term in accounting for debt securities. Option E, liquid securities, does not specify whether the securities are actively managed and traded for profit.

Investments in Debt Securities That the Company Actively Manages and Trades