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Author: Wild
Publisher: MCG
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Chapter 15, Problem 1E

Exercise 15-1

Debt and equity securities and shod- and long-term investments

C1

Complete the following descriptions by filling in the blanks using the tern or phrases a through g.

a. not intended

b. not readily

c. cash

d. operating cycle

e. one year

f. owner

g. creditor

1. Debt securities reflect a _____ relationship such a investments in notes, bonds, and certificates of deposit.

2. Equity securities reflect a(n) ____ relationship such as shares of stock issued by companies.

3. Short-term investments are securities that (1) management intends to convert to cash within ____ _____ or the _____ _____, whichever is longer, and (2) are readily convertible to ____.

4. Long-term investments in securities are defined as those securities that are ____ ____ convertible to cash or are _____ _____ to be converted into cash in the short term.

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Chap 14 Q.4
Question 4 Capital markets trade securities that: I. mature in more than one year. II. has relatively higher risk of capital loss. III. must be guaranteed by the federal government. A. I only. B. II only. C. I and II only D. I and III only
Q10

Chapter 15 Solutions

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