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Investments classification:
Investments can be classified into two types from the point of view of the period of holding the investment. These types are short term and long term. A short-term investment is usually made for period of less than a year and a long-term investment is made for the longer period.
1. Reason for investment in debt or equity securities
To identify: The reason for investment in debt or equity securities.
Solution: G H may choose to invest in debt or equity security because it would need the cash back in short term.
2. Classification of investment
To identify: The Classification of investment
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Chapter 15 Solutions
Horngren's Accounting, The Financial Chapters, Student Value Edition Plus MyLab Accounting with Pearson eText - Access Card Package (12th Edition)
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
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