Concept explainers
Exercise 15-1
Debt and equity securities and shod- and long-term investments
C1
Complete the following descriptions by filling in the blanks using the tern or phrases a through g.
a. not intended
b. not readily
c. cash
d. operating cycle
e. one year
f. owner
g. creditor
1. Debt securities reflect a _____ relationship such a investments in notes, bonds, and certificates of deposit.
2. Equity securities reflect a(n) ____ relationship such as shares of stock issued by companies.
3. Short-term investments are securities that (1) management intends to convert to cash within ____ _____ or the _____ _____, whichever is longer, and (2) are readily convertible to ____.
4. Long-term investments in securities are defined as those securities that are ____ ____ convertible to cash or are _____ _____ to be converted into cash in the short term.
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Chapter 15 Solutions
Fundamental Accounting Principles -Hardcover
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