Accountıng Iı Deneme Sınavı Sorusu #1222653

Which of the following is not accurate information about why companies invest?


A company can invest to earn interest revenue.

A company may also invest cash in the debt or equity securities of another company. 

A company can invest to receive dividends.

Companies use their idle or excess money only by depositing them in debt securities.

A company can invest to realize gains from increases in the market price of the securities.


Yanıt Açıklaması:

The correct answer is B. Companies may direct their idle or excess cash into either debt securities or equity securities, as the two main groups of investment alternatives. Debt securities are not a single investment alternative.

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