ACCOUNTING PRINCIPLES
12th Edition
ISBN: 9781119145257
Author: Weygandt
Publisher: JOHN WILEY+SONS INC.CUSTOM
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 16, Problem 1Q
To determine
Securities: Securities refers to the stocks or bonds traded in the secondary market. Price of securities changes with the change in demand and supply of securities. It is an asset of the holder.
To explain: Reasons the corporations invest in securities.
Expert Solution & Answer
Answer to Problem 1Q
Reasons the corporations invest in securities:
- To earn extra income from excess funds.
- To gain market share of a business.
- Since, securities have a ready market and can be considered as liquid assets.
- To get a regular income.
Explanation of Solution
- Corporations invest in securities to utilize the available funds and earn returns.
- Investment in securities provides an extra income to the corporate and an asset of the firm.
- Firm can sell the securities in the secondary market at any point of time.
Conclusion
Therefore, there are many reasons that the corporations invest in 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
Can you provide the accurate answer to this financial accounting question using correct methods?
Please given correct answer for General accounting question I need step by step explanation
I am looking for the most effective method for solving this financial accounting problem.
Chapter 16 Solutions
ACCOUNTING PRINCIPLES
Ch. 16 - Prob. 1QCh. 16 - Prob. 2QCh. 16 - Prob. 3QCh. 16 - Prob. 4QCh. 16 - 5. What is the cost of an investment in stock?
Ch. 16 - Prob. 6QCh. 16 - Prob. 7QCh. 16 - Prob. 8QCh. 16 - Prob. 9QCh. 16 - Prob. 10Q
Ch. 16 - Prob. 11QCh. 16 - Prob. 12QCh. 16 - Prob. 13QCh. 16 - Prob. 14QCh. 16 - Prob. 15QCh. 16 - Prob. 16QCh. 16 - Prob. 17QCh. 16 - Prob. 18QCh. 16 - Prob. 19QCh. 16 - Prob. 20QCh. 16 - Prob. 16.1BECh. 16 - Prob. 16.2BECh. 16 - Prob. 16.3BECh. 16 - Prob. 16.4BECh. 16 - Prob. 16.5BECh. 16 - Prob. 16.6BECh. 16 - Prob. 16.7BECh. 16 - Prob. 16.8BECh. 16 - Prob. 16.1DIECh. 16 - Prob. 16.2DIECh. 16 - Prob. 16.3ADIECh. 16 - Prob. 16.1ECh. 16 - Prob. 16.2ECh. 16 - Prob. 16.3ECh. 16 - Prob. 16.4ECh. 16 - Prob. 16.5ECh. 16 - Prob. 16.6ECh. 16 - E16-7 On January 1, Zabel Corporation purchased a...Ch. 16 - Prob. 16.8ECh. 16 - Prob. 16.9ECh. 16 - E16-10 At December 31, 2017, the trading...Ch. 16 - E16-11 Data for investments in stock classified as...Ch. 16 - Prob. 16.12ECh. 16 - Prob. 16.1APCh. 16 - P16-2A In January 2017, the management of Kinzie...Ch. 16 - Prob. 16.3APCh. 16 - Prob. 16.4APCh. 16 - Prob. 16.5APCh. 16 - Prob. 16.6APCh. 16 - Prob. 16.1BYPCh. 16 - Prob. 16.2BYPCh. 16 - Prob. 16.3BYPCh. 16 - Prob. 16.5BYPCh. 16 - Prob. 16.6BYPCh. 16 - Prob. 16.7BYP
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- York Digital has an accounts receivable turnover for the year of 7.5. Net sales for the period are $180,000. What is the number of days' sales in receivables?arrow_forwardABD Enterprises' total quick assets were $7,420,000, its current assets were $10,100,000, and its current liabilities were $6,800,000. Its acid-test ratio equals _.arrow_forwardPlease provide correct solution and accountingarrow_forward
- Please provide the answer to this general accounting question using the right approach.arrow_forwardPlease explain the solution to this financial accounting problem with accurate explanations.arrow_forwardCan you help me solve this financial accounting question using valid financial accounting techniques?arrow_forward
- An item of equipment owned by Thurman Manufacturing cost $180,000 and had an estimated use of 75,000 hours. During the first 3 years, the equipment was used for 15,000, 13,500, and 12,000 hours. The equipment has an estimated life of 7 years and an estimated salvage value of $22,500.arrow_forwardGeneral accountingarrow_forwardAccounting answer pleasearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
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:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
Framing Effect: Facts vs Half-Truths & Manipulation; Author: UKspreadbetting;https://www.youtube.com/watch?v=aMNOp9qMA2I;License: Standard youtube license