11. Which type of financial assets are purchased only with the intent of selling them in the near future?DAFVTPL financial assetsⒸBFVTOCI Financial assetsC. Amortized Cost financial assetsOD. Investment accounted for using the equity method

FVTPL is subsequently measured at fair value Any gain and loss in the fair value measurement to be…

11. Which type of financial assets are purchased only with the intent of selling them in the near future? DA FVTPL financial assets OB. FVTOCI tinancial assets C. Amortized Cost financial assets OD. Investment accounted for using the equity method equly

11. Which type of financial assets are purchased only with the intent of selling them in the near future? DA FVTPL financial assets OB. FVTOCI tinancial assets C. Amortized Cost financial assets OD. Investment accounted for using the equity method equly

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 7DQ

See similar textbooks

Related questions

Q: The market which deals with short term financial assets Select one: a. Commercial Market b. Primary…

A: Financial assets are a kind of liquid asset that generates its value from a contract that provides…

Q: What is return on assets(roa)?

A: In general terms, ROA is similar to Return on Investment.

Q: for the asset turnover ratio, which of the following best describes net assets? A. Fixed Assets +…

A: Asset turnover ratio is a measure which says that how effectively business assets are generating…

Q: Return on equity b. Total assets turnover c. Return on assets

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: _Accounting concept is in valuation of fixed assets

A: Option A. Historical cost concept says fixes asset is to be recorded at the amount paid to acquire…

Q: Which of the following is typically recorded at its present value? a. long-term investments b.…

A: Present value is the worth of any asset or liability that is more in the present as compared to the…

Q: According to the acquired assets should be recorded at the amount actually paid rather than at the…

A: Lets understand the each option given for the question to determine the correct answer. Monetary…

Q: Problem 2: ABC Company was formed on January 1, 2020. The entity reported the following financial…

A: We are provided with the income statement and balance sheet of ABC company for the first year of…

Q: Which types of investments are valued at amortized cost? Explain the rationale for this accounting.

Q: Which of the following is a usefulness of the statement of financial position? OA. The use of…

A: For every business, accounting is very important for analysis and evaluation. Accounting is based on…

Q: Knowledge Check 01 Which of the following describes how working capital is computed? Multiple Choice…

A: Working Capital is the operating liquidity of the company which is available to business or entity.…

Q: Answer the following question a. Return on equity b. Total assets turnover c. Return on assets d.…

A: Return on Equity: It represents a measure of profitability for the firm expressed in percentage…

Q: 5). Intangible assets are initially recorded at (a). cost (b). expected future value (c). expected…

A: The intangible asset seems to be a resource that provides long-term value for a firm but it has no…

Q: An investment is the use of money or capital for income or _______. expenses profit value present…

A: An investment is an item or an asset acquired with the goal of earning income or appreciation in the…

Q: What is the default classification for an equity investment? A Fair value through profit or loss…

A: Answer:- Equity investment meaning:- Equity investment is purchasing the shares directly from the…

Q: 2021 Industry Ratio Analysis Est. 2020 2019 Average Liquidity Ratios Current Ratio (times) 4. 2…

A: Since the question specifically asks for Asset Management and Market Value Ratios, only these ratios…

Q: Choose when the profit is earned as a result of financial capital maintenance from the options…

A: As per Financial Capital Maintenance, a company earns a profit only if its net assets at the end of…

Q: he Revaluation Reserve Account should be accounted for as part of a. Assets b. Liability c.…

A: Equity - Equity is a that portion of company's balance sheet that includes amount invested by the…

Q: How do you decide the liquidity order (what asset come before the other...expenses vs prepaid vs…

A: Classified balance sheet: The main elements of balance sheet assets, liabilities, and stockholders’…

Q: Accounting: type question:,,,,,, While calculating purchase price, the following values of assets…

A: In general, anything valuable or useful is considered an asset. The majority of people own personal…

Q: Valuing assets at the amount of cash or equivalents paid or the fair value of the consideration…

A: The elements of financial statements which contain the financial information about an organization…

Q: A. Which of the following is most closely associated with the cost of using assets? a. Asset…

A: A. The ratio of total sales or revenue to average assets is known as asset turnover. The asset…

Q: Which ratio measures the ability to pay current liabilities with current assets?a. Debt ratiob.…

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…

Q: a. Return on equity b. Total assets turnover c. Return on assets d. Current ratio e. Receivables…

A: a. Return on equity = Net Income / Shareholders' Equityb. Total assets turnover = Sales / Total…

Q: Assets are usually valued at? a.Historical Cost b. Residual Value c. Net Realizable Value d.…

A: Assets are the resources that are owned by the organizations. Assets can be current or non-current.

Q: According to historical cost principle, the assets and liabilities should be reported (tick…

A: Assets and liabilities are the part of the balance sheet of a company. They help in determining the…

Q: Choose the correct. The cost of debt capital is calculated on the basis of: A. Net proceeds…

A: Cost of debt: It is that the average rate of interest an organization spends on its debts. It is the…

Question

11. Which type of financial assets are purchased only with the intent of selling them in the near future?
DAFVTPL financial assets
ⒸBFVTOCI Financial assets
C. Amortized Cost financial assets
OD. Investment accounted for using the equity method

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following is the correct formula for calculating rate of return on total assets? A. (Net income minus− Interest expense) / Average total asset B. Total equity / Total assets C. (Net income + Interest expense) / Average total assets D. (Net income minus− Interest expense) / Total assets
The monetary value of the net assets is reported at its historical cost on the balance sheet? a. physical capital b. excess capital c. net capital d. financial capital
An investment is the use of money or capital for income or _______. expenses profit value present value intrest
Knowledge Check 01 Which of the following describes how working capital is computed? Multiple Choice Current assets Current liabilities Current liabilities Current assets Current assets-Current liabilities Current assets + Noncurrent liabilities
Capitalizing a cost involves increasing what type of account?a. Liabilityb. Expensec. Stockholders’ equityd. Asset
Question 12 Which of the following is a usefulness of the statement of financial position? OA. The use of judgments and estimates. OB. Omitted items. OC. Valuation of items at historical cost. OD. Evaluate capital structure. l
Financial Asset at Fair Value under OCI would have its gain or loss reported at what Financial Statement? Income Statement Cash Flow Changes in Owners Equity Balance Sheet
Question 04a. What is Proforma Income Statement, Proforma Balance Sheet, Proforma Cash Flow?b. Briefly explain Intellectual Properties along with supporting practical examples.
Which of the following will cause owner's capital to decrease?Select one:a. Capitalb. Profitc. Drawingsd. Liability
11, please answer part b, thanks list of accounts Accumulated Other Comprehensive Income Allowance for Investment Impairment Bond Investment at Amortized Cost Cash Commission Expense Dividends Receivable Dividend Revenue FV-NI Investments FV-OCI Investments Gain on Disposal of Investments - FV-NI Gain on Disposal of Investments - FV-OCI Gain on Sale of Investments GST Receivable Interest Expense Interest Income Interest Payable Interest Receivable Investment in Associate Investment Income or Loss Loss on Discontinued Operations Loss on Disposal of Investments FV-NI Loss on Disposal of Investments FV-OCI Loss on Impairment Loss on Sale of Investments No Entry Note Investment at Amortized Cost Other Investments Recovery of Loss from Impairment Retained Earnings Unrealized Gain or Loss Unrealized Gain or Loss - OCI
The net assets approach of computing for the net income requires this item to be added to the ending capital. a. Beginning capital b. Additional investments c. Withdrawals d. Increase in Liabilities
How do you caluclate return on assets and return on equity?