Trading securities: Debt securities which are held with the intention to sell in the short term for profit are called trading securities. Available-for-sale securities: A debt or equity securities which are purchased with the intention of selling it before its maturity, or selling prior to the longest time period in case if security is without its maturity are available-for-sale securities. Held to maturity securities: Securities purchased and held till maturity or with an intention of holding the investments till maturity. Fair value: Fair value is a selling price which is agreed by the buyer and seller, it is also the estimate of the potential market price of good, service or asset. Amortization: Amortization is when the cost of an intangible asset is allocated over the life of the investments. To determine the proper investment accounting approach with the correct valuation approach.

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Chapter 17, Problem 4IST

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Trading securities: Debt securities which are held with the intention to sell in the short term for profit are called trading securities.

Available-for-sale securities: A debt or equity securities which are purchased with the intention of selling it before its maturity, or selling prior to the longest time period in case if security is without its maturity are available-for-sale securities.

Held to maturity securities: Securities purchased and held till maturity or with an intention of holding the investments till maturity.

Fair value: Fair value is a selling price which is agreed by the buyer and seller, it is also the estimate of the potential market price of good, service or asset.

Amortization: Amortization is when the cost of an intangible asset is allocated over the life of the investments.

To determine the proper investment accounting approach with the correct valuation approach.

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