As part of their internal control procedures, management needs to have procedures in place to properly classify financial instruments as trading, available-for-sale, or held-to-maturity, based on
A) cost.
B) intent.
C) maturity.
D) probable future gain or loss.

Question

Quizplus · Accepted Answer

The classification of financial instruments as trading, available-for-sale, or held-to-maturity is based on management's intent with the instruments. Cost, maturity, and probable future gain or loss are all factors to consider, but the ultimate determination lies with the intent of management.

As Part of Their Internal Control Procedures, Management Needs to Have