Describe the accounting for investments in debt ­securities.

Q: Define revenue bonds

A: Answer: A revenue bond is also regarded as a municipal bond that is sponsored by specific individual…

Q: What is the Interpreting Debt Disclosures ? How does it relates to the financial accounting and why…

A: Key references: International Accounting Standards Board. (2010). International Financial Reporting…

Q: Define bonds payable.

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: Explain Recording Bonds at Issuance.

A: Bond at issuance is recorded at: Par Premium Discount

Q: Describe the disclosures appropriate to long-term debt in its various forms and calculate related…

A: Long-term debts refer to the financial obligations of the company that are due for more than one…

Q: Explain debt to equity ratio and how to calculate.

A:

Q: Define the term trading debt investments.

A: Investment is an asset or an item purchased today in the hope that it will generate income in the…

Q: Accounting type Question: Securities premium reserve account is shown on the liabilities side in the…

A: Securities premium reserve is the excessive amount charged with the nominal value of any share. As…

Q: How can we determine the amount of debt financing through bonds?

A: When the firm raises funds through the sale of its long-term or short-term debt instruments then…

Q: How should discount on bonds payable be reported on the financial statements? Premium on bonds…

A: Concept: A premium on bonds occurs if, the bonds are issued at a high price than the face value. On…

Q: Distinguish the following financial markets. Provide examples of the type and/or nature of the…

A: Debt market is the market where loans are bought and sold. It is also called the bond market. Equity…

Q: Describe the accounting for investments in equity securities.

A: Equity securities: The financial instruments that claim ownership in the stock of Investee Company,…

Q: Explain accounting for investments in equity securities.

A: An equity security is an investment in stock issued by another company. The accounting for an…

Q: GAAP requires investments in bonds classified as trading securities to be reported at their:

A:

Q: Understand the accounting for investments in debt securities

A: Debt securities are the financial instruments which entitle the holder of such securities a fixed…

Q: describe the fi nancial statement presentation of and disclosures relating to debt

A: A single line component of the cumulative amount of a long-term firm's liability due after one year…

Q: what reporting categories are used to account for debt investments?

A:

Q: Explain how trading debt securities are accounted forand reported.

A: Trading securities: It refers to the buying and selling of short-term debt or equity securities to…

Q: other comprehensive income

A: Other comprehensive income includes gains or losses that are not included in profit and loss…