An attribute of an equity instrument is that: A. it is always issued at par value. B. the holder is not entitled to a fixed-rate return. C. it always confers voting rights upon the holder. D. the holder is entitled to a fixed-rate return.

An attribute of an equity instrument is that: A. it is always issued at par value. B. the holder is not entitled to a fixed-rate return. C. it always confers voting rights upon the holder. D. the holder is entitled to a fixed-rate return.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 5MC

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Question

An attribute of an equity instrument is that:

	A.	it is always issued at par value.
	B.	the holder is not entitled to a fixed-rate return.
	C.	it always confers voting rights upon the holder.
	D.	the holder is entitled to a fixed-rate return.

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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