All investments in debt securities are classified for reporting purposes in one of three categories, and can be accounted for differently depending on the classification. What are these three categories?

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 12, Problem 12.1Q

All investments in debt securities are classified for reporting purposes in one of three categories, and can be accounted for differently depending on the classification. What are these three categories?

Expert Solution & Answer

To determine

Debt securities: The financial instruments which are bought by investors, or corporations, or mutual funds, are referred to as debt securities. The companies issue debt securities to raise capital for the purposes of purchasing assets, or paying debts.

To indicate: The three categories in which investments in debt securities are classified

Explanation of Solution

For, the purposes of reporting, the investments in debt securities are classified in the following three categories:

Held-to-maturity securities
Trading securities
Available-for-sale securities

Conclusion

Thus, for the purposes of reporting, the investments in debt securities are classified into held-to-maturity, trading, and available-for-sale securities.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Maharaj Garage & Car Supplies sells a variety of automobile cleaning gadgets including a variety of hand vacuums. The business began the first quarter (January to March) of 2024 with 20 (Mash up Dirt) deep clean, cordless vacuums at a total cost of $126,800. During the quarter, the business completed the following transactions relating to the "Mash up Dirt" brand. January 8 January 31 February 4 February 10 February 28 March 4 March 10 March 31 March 31 105 vacuums were purchased at a cost of $6,022 each. In addition, the business paid a freight charge of $518 cash on each vacuum to have the inventory shipped from the point of purchase to their warehouse. The sales for January were 85 vacuums which yielded total sales revenue of $768,400. (25 of these units were sold on account to Mandys Cleaning Supplies, a longstanding customer) A new batch of 65 vacuums was purchased at a total cost of $449,800 8 of the vacuums purchased on February 4 were returned to the supplier, as they were…

Tutor give me ans

I'm waiting for solution

Answer 2

Textbook Question

Chapter 12, Problem 12.1Q

All investments in debt securities are classified for reporting purposes in one of three categories, and can be accounted for differently depending on the classification. What are these three categories?

Expert Solution & Answer

To determine

Debt securities: The financial instruments which are bought by investors, or corporations, or mutual funds, are referred to as debt securities. The companies issue debt securities to raise capital for the purposes of purchasing assets, or paying debts.

To indicate: The three categories in which investments in debt securities are classified

Explanation of Solution

For, the purposes of reporting, the investments in debt securities are classified in the following three categories:

Held-to-maturity securities
Trading securities
Available-for-sale securities

Conclusion

Thus, for the purposes of reporting, the investments in debt securities are classified into held-to-maturity, trading, and available-for-sale securities.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 12, Problem 12.1Q

All investments in debt securities are classified for reporting purposes in one of three categories, and can be accounted for differently depending on the classification. What are these three categories?

Expert Solution & Answer

To determine

Debt securities: The financial instruments which are bought by investors, or corporations, or mutual funds, are referred to as debt securities. The companies issue debt securities to raise capital for the purposes of purchasing assets, or paying debts.

To indicate: The three categories in which investments in debt securities are classified

Explanation of Solution

For, the purposes of reporting, the investments in debt securities are classified in the following three categories:

Held-to-maturity securities
Trading securities
Available-for-sale securities

Conclusion

Thus, for the purposes of reporting, the investments in debt securities are classified into held-to-maturity, trading, and available-for-sale securities.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 12, Problem 12.1Q

All investments in debt securities are classified for reporting purposes in one of three categories, and can be accounted for differently depending on the classification. What are these three categories?

Expert Solution & Answer

To determine

Debt securities: The financial instruments which are bought by investors, or corporations, or mutual funds, are referred to as debt securities. The companies issue debt securities to raise capital for the purposes of purchasing assets, or paying debts.

To indicate: The three categories in which investments in debt securities are classified

Explanation of Solution

For, the purposes of reporting, the investments in debt securities are classified in the following three categories:

Held-to-maturity securities
Trading securities
Available-for-sale securities

Conclusion

Thus, for the purposes of reporting, the investments in debt securities are classified into held-to-maturity, trading, and available-for-sale securities.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Debt securities: The financial instruments which are bought by investors, or corporations, or mutual funds, are referred to as debt securities. The companies issue debt securities to raise capital for the purposes of purchasing assets, or paying debts.

To indicate: The three categories in which investments in debt securities are classified

Explanation of Solution

For, the purposes of reporting, the investments in debt securities are classified in the following three categories:

Held-to-maturity securities
Trading securities
Available-for-sale securities

Conclusion

Thus, for the purposes of reporting, the investments in debt securities are classified into held-to-maturity, trading, and available-for-sale securities.

Answer 8

Expert Solution & Answer

To determine

Debt securities: The financial instruments which are bought by investors, or corporations, or mutual funds, are referred to as debt securities. The companies issue debt securities to raise capital for the purposes of purchasing assets, or paying debts.

To indicate: The three categories in which investments in debt securities are classified

Explanation of Solution

For, the purposes of reporting, the investments in debt securities are classified in the following three categories:

Held-to-maturity securities
Trading securities
Available-for-sale securities

Conclusion

Thus, for the purposes of reporting, the investments in debt securities are classified into held-to-maturity, trading, and available-for-sale securities.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Debt securities: The financial instruments which are bought by investors, or corporations, or mutual funds, are referred to as debt securities. The companies issue debt securities to raise capital for the purposes of purchasing assets, or paying debts.

To indicate: The three categories in which investments in debt securities are classified

Answer 12

Explanation of Solution

For, the purposes of reporting, the investments in debt securities are classified in the following three categories:

Held-to-maturity securities
Trading securities
Available-for-sale securities

Answer 13

Conclusion

Thus, for the purposes of reporting, the investments in debt securities are classified into held-to-maturity, trading, and available-for-sale securities.

Answer 14

Ch. 12 - All investments in debt securities are classified...Ch. 12 - When market rates of interest rise after a...Ch. 12 - Does GAAP distinguish between fair values that are...Ch. 12 - When a debt investment is acquired to be held for...Ch. 12 - Prob. 12.5Q Ch. 12 - What is comprehensive income? Its composition...Ch. 12 - Why are holding gains and losses treated...Ch. 12 - Prob. 12.8Q Ch. 12 - Prob. 12.9Q Ch. 12 - Prob. 12.10Q

All investments in debt securities are classified for reporting purposes in one of three categories, and can be accounted for differently depending on the classification. What are these three categories?

Concept explainers

Videos

Explanation of Solution

Want to see more full solutions like this?

Chapter 12 Solutions