IIA
IIA-CIA-PART3 · Question #288
An organization buys equity securities for trading purposes and sells them within a short time period. Which of the following is the correct way to value and report those securities at a financial…
The correct answer is B. Cash may be bed up in items not generating financial value. If an organization has a high amount of working capital compared to the industry average, which of the following is most likely true?
Measure
Question
An organization buys equity securities for trading purposes and sells them within a short time period. Which of the following is the correct way to value and report those securities at a financial statement date?
Options
- ASettlement of short-term obligations may become difficult.
- BCash may be bed up in items not generating financial value.
- CCollection policies of the organization are ineffective.
- DThe organization is efficient in using assets to generate revenue.
How the community answered
(44 responses)- A5% (2)
- B75% (33)
- C7% (3)
- D14% (6)
Explanation
If an organization has a high amount of working capital compared to the industry average, which of the following is most likely true?
Topics
#equity securities#fair value#financial reporting#trading securities
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