Long-term investments include:Multiple ChoiceInvestments that are not readily convertible to cash or are not intended to be converted to cash in the short term.Investments in marketable stocks that are intended to be converted into cash in the next month.Investments in marketable bonds that are intended to be converted into cash in the next month.Only investments readily convertible to cash.Investments intended to be converted to cash within one year.

Introduction:- Investments are classified into two types as follows under:- Short term investments…

Answered: Long-term investments include: Multiple…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

Which of the following is not a reason for the issuance of long-term liabilities? Debt financing dilutes ownership interest. Debt may be the only available source of funds. Debt financing may have a lower cost. Debt financing offers an income tax advantage.
Under the capital maintenance concept, which of the following items should be deducted from the increase or decrease in capital? a. Losses on hedging instruments in a cash flow hedge. b. Increase in revaluation surplus. c. Actuarial loss on remeasurement on defined benefit liability. d. Reacquisition of treasury shares.
The time value of money is used in calculating bond prices because: Group of answer choices A - The company might choose to repay the bonds prior to their maturity date B - Bond investors receive future payments and purchase bonds with current dollars C - The amount to be repaid at maturity will change as market rates change D - Cash interest payments to bondholders will change as market rates change
Capital markets: a.apply only to bonds. b.apply only to stock. c.involve long-term investments. d.None of the above.
Available-for-sale securities are securities that management expects to sell in the future, but not in the near term. True False
The financial market offers the investors a means to sell their financial asset thereby a. Increasing the wealth of investor b. Offering liquidity to such assets c. Decreasing the wealth of investor d. Diluting the liquidity of such assets
Creditors look for Select one: a. Net working capital for their safety b. Balance net working capital for their safety c. None of the options d. High net working capital for their safety e. Less net working capital for their safety
3. Cash equivalents are a. Short-term and highly liquid investments that are readily convertible into cash b. Short-term and highly liquid investments that are readily convertible into cash with remaining maturity of three months c. Short-term and highly liquid investments that are readily convertible into cash with remaining maturity of three months d. Short-term and highly liquid marketable equity securities
Short-term investments are also called marketable securities. True or False True False
The investment income generated between the time premiums are received and the time claims are paid may result in underwriting risk due to? a. Unexpected decreases in investment yields or returns. b. Unexpected increases in investment yields or returns. c. Unexpected increases in expenses. d. Unexpected decreases in expenses.
JKL Insurance Company reported the following information on its accounting statements last year: Premiums Written $90,000,000 Loss Adjustment Expenses $5,000,000 Underwriting Expenses $45,000,000 Premiums Earned $100,000,000 Incurred Losses $70,000,000 What was JKL's combined ratio last year? Seleccione una: a. 108.3 b. 103.3 c. 100.0 d. 105.0
TRUE OR FALSE?Cash set aside for bonds payable that will mature currently is shown as current asset.

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