show you work which of the following is not correct in regard to trading investments? a. They are held with the intention of selling them in a short period of time. b. Unrealized holding gains and losses are reported as part of net income. c. Any discount or premium is nott amortized d. All of these answer choices are correct.

Q: Which of the following is true regarding accounting for debt investments? A) The classification of…

A: D) All of the above. B) The fair value option must be elected for all such…

Q: Why is the return associated with common stock referred to as a residual claim? Contrast this kind…

A: Common stock holders are the owners of the business. Profits earned by the company will be the…

Q: Investors will pay a premium to invest in risky assets. OA. True OB. False

A: Risk premium is the extra return  that an investor receives for investing in risky assets.

Q: Define the terms, or give short explanations.               -short sale/short selling…

A: A derivative is a financial contract whose value is derived from the underlying asset, which could…

Q: A market in which all financial assets can be sold to someone other than the original issuer is…

A: A primary market is a market where securities are first issued by its original issuer/ creator. Once…

Q: Please answer with reason for all why the option is correct and why the other options are…

A: The correct option is C. Share application account.Explanation:When money is received at the time of…

Q: When comparing fi nancial statements prepared under IFRS with those prepared underUS GAAP, analysts…

A: IFRS and US GAAP follows similar accounting policies when it comes to realized losses and unrealized…

Q: An investor pays taxes on unrealized gains on equity investments   options:   True   False

A: An unrealized gain could be a potential profit that exists on paper, resulting from an investment.…

Q: Dividend revenue is recognized for trading securities and available for sale securities even if held…

A: Solution Concept Dividend is recognized in income statement for trading securities if they are held…

Q: In applying the equity method of accounting for an Equity Investment, profit on intercompany sales…

A: Explanation: Equity method: The equity method is an accounting method that is to be used to record…

Q: According to the fair value principle, assets and liabilities should be reported Select answer from…

A: The fair value principle is an accounting concept that aims to provide a more accurate…

Q: When using the internal rate of return method, interest payments should OA. not be discounted OB. be…

A: While using Internal rate of return calculation we have to discount each element of income and cost…

Q: Which of the following statements is correct? a. IFRS permits the fair value option for the equity…

A: GAAP are the general accounting principles which are to be followed by the U.S companies in…

Q: Which statement is not true?

A: In the above question, there are four statements; we must identify which of the four statements is…

Q: Marketable securities are accounted for at their current fair value using mark-to-market accounting.…

A: Mark-to-Market accounting is an accounting practice that helps to adjust the value of an asset on…

Q: 1. How are passive investments accounted for under ASPE? a) Cost of amortized cost. b) FVTPL…

A:

Q: Indicate how unrealized holding gains and losses should be reported for investments classified as…

A: Unrealized holding gains and losses: An unrealized gain is a profit recorded on paper results from…

Q: Which of the following statements concerning the different types of hedging transactions is…

A: The Correct Answer is Option "C"  i.e. In hedging transaction which is undesignated, unrealized…

Q: For hedge accounting to be used, U.S. GAAP requires that these criteria must be satisfied, except: O…

A: The objective of hedge accounting is to match the timing of income statement recognition of the…

Q: Largo Company recorded for the past year sales of $414,400 and average operating assets of $259,000.…

A: Answer) Calculation of Margin needed to earn Target Net Operating Income Desired Margin = Net…

Q: nvestors choose deri tives

A: derivatives are financial instruments whose value is derived from an underlying asset such as bonds…

Q: The following terms were introduced in this chapter:   Strategic investments Non-strategic…

A: Investments are the distribution of resources, usually monetary, with the goal of producing revenue…

Q: True (t) or False (f) _____ The accounting for short-term debt investments and for long-term debt…

A: The investment is made by the business so as to earn some profits.

Q: Under IFRS, the unrealized loss on trading investments should be reported: a. as part of other…

A: Option a: This option is incorrect because unrealized loss on trading investments is a part of other…

Q: How is the adjustment to fair value recorded differently for a cash flow hedge versus a fair value…

A: Hedge Hedge is simply called financial instrument which can be reduce the mitigation of risk which…

Q: The Equity Method of accounting for investments:     a)  Requires the investment asset to…

A: As per IAS 28, if any investment is made in associates and joint ventures, the equity method should…