What does the word "marketable" imply as far as "marketable securities"?
A)It implies that the securities should be classified as a temporary account.
B)It implies that a firm owes money on the securities.
C)It implies that the securities are considered to be goodwill.
D)It implies that the firm can readily buy and sell the securities on an exchange.
E)It implies that the firm has signed a formal written contract called an indenture.

Question

Quizplus · Accepted Answer

The word "marketable" in "marketable securities" implies that the securities can be easily bought and sold in the market, without significant limitations or restrictions. Therefore, the best choice is D, which states that the securities can be readily traded on an exchange. Choices A, B, C, and E are incorrect because they do not accurately reflect the meaning or implication of marketable securities.

What Does the Word "Marketable" Imply as Far as "Marketable