Chapter 9
Investments
434
AS-10 (
2
)
What is a trading investment? Is it a debt or equity investment?
AS-11 (
2
)
Why are money market instruments, such as a treasury bill (T-bill), term deposit or money
market fund considered short-term debt instruments ?
AS-12 (
2
)
The amortized cost method can be used to record short-term investment of treasury
bills (T-bills). Why do you think using the amortized cost method to record a 90-day T-bill
investment is appropriate?
