UNLV Accounting Competency Practice Exam 2025 – Complete Prep Guide

Securities refer to financial instruments that represent ownership positions in companies (such as stocks), creditor relationships with governments or corporations (like bonds), or rights to ownership as represented by an option. The correct association for securities includes stocks, government bonds, and treasury bills because these are established financial instruments that are bought and sold in markets.

Stocks represent equity in a company, allowing shareholders to claim a portion of the company's assets and earnings. Government bonds are debt securities issued by governments to finance public projects, and treasury bills are short-term debt obligations that a government sells to raise funds. This range of instruments encapsulates the essence of securities, as they are designed for various purposes including investment and finance.

The other options do not align with the definition of securities: real estate holdings pertain to physical property, patents and trademarks relate to intellectual property, and physical inventory items are tangible goods held for sale. Therefore, the scope of securities is specifically covered by stocks, bonds, and treasury bills, making this choice the most accurate representation.