11) Depending on the maturity date, held-to-maturity investments are categorized as current assets or long-term assets on the balance sheet.
12) Long-term investments are also known as marketable securities.
13) Long-term investments are all investments that are not short-term.
14) Held-to-maturity investments are categorized as long-term assets on the balance sheet, irrespective of the maturity date.
15) A security is a ________.
A) regulation dealing with the transactions of investments
B) system aimed at protecting the interests of the market participants
C) share or interest representing financial value
D) process related to the valuation of a financial instrument
16) Which of the following is true of securities?
A) They are commonly traded on an exchange.
B) They are assets traded between companies working in the same industry.
C) They are intangible assets traded in the stock exchange.
D) They don't represent any ownership interests.
17) A(n) ________ is represented by a certificate and is commonly traded on an exchange.
B) intangible asset
18) Which of the following is an example of a security?
B) municipal bond
C) interest expense
19) A debt security ________.
A) represents a credit relationship with another company or governmental entity, and typically pays interest for a fixed period
B) represents stock ownership in another company and sometimes pays dividends
C) is a standardized contract between two parties to buy or sell an underlying security at a predetermined price on a specific date
D) is a cash market transaction in which the ownership of the underlying asset is deferred until a specific date
20) Which of the following is true of debt securities?
A) Debt securities entitle the holder to receipt of a share of profit in the form of dividends.
B) Debt securities typically pay interest for a fixed period.
C) Debt securities include preferred stocks.
D) Debt securities represent ownership interests of the investors.