Asked by Keariel Threatt on Jun 05, 2024

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Equity securities reflect a creditor relationship such as investments in notes,bonds,and certificates of deposit.

Equity Securities

Financial instruments that represent ownership interest in a company, such as common stock, and typically provide voting rights and potential dividends.

Creditor Relationship

The financial relationship that exists between a borrower or debtor and a lender, where the lender provides a loan or credit to the borrower.

  • Recognize the accounting implications of equity and debt securities and their distinctions.
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RM
Rachel MegdalJun 07, 2024
Final Answer :
False
Explanation :
Equity securities represent ownership in a company, whereas creditor relationships are typically found in debt securities such as notes, bonds, and certificates of deposit.