Explain the difference between short-term and long-term investment.

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Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter A, Problem 1Q

To determine

Explain the difference between short-term and long-term investment.

Expert Solution & Answer

Explanation of Solution

Investment: The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment.

Difference between short-term and long-term investments:

Short-Term Investments	Long-term Investments
The investments which are bought to sell or trade within a short time period of less than 90 days, are referred to as short-term investments.	The investments which are bought to hold for longer time period of more than 6 months are referred to as long-term investments.
These investments are reported as current assets on the balance sheet.	These investments are reported as non-current assets on the balance sheet.

Table (1)

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Kindly give a step by step details explaination of each answers especially question 5 and 6. Please, don't just give answers without explaining how we arrived at the answer. Thanks! The following are the questions: 1. What is the general journal entries the transactions described for Hogan Company. All sales are on account. Use the date of December 31 to make the entry to summarize sales for the year in the old territory and new territory. 2. Make the journal entries to record the write-off of accounts in the new territory. 3. Make the journal entry to record the write-off of accounts in the old territory. 4. Make the entry on December 31 to record uncollectible accounts expense for 20X1 for both territories. Make the calculation using the percentages developed by Hogan. 5. Let’s say the Allowance for Doubtful Accounts had a credit balance of $24,800 on September 30 before any of the above entries were made. Calculate the balance in the allowance account after…

Financial accounting

General Accounting

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter A, Problem 1Q

To determine

Explain the difference between short-term and long-term investment.

Expert Solution & Answer

Explanation of Solution

Investment: The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment.

Difference between short-term and long-term investments:

Short-Term Investments	Long-term Investments
The investments which are bought to sell or trade within a short time period of less than 90 days, are referred to as short-term investments.	The investments which are bought to hold for longer time period of more than 6 months are referred to as long-term investments.
These investments are reported as current assets on the balance sheet.	These investments are reported as non-current assets on the balance sheet.

Table (1)

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter A, Problem 1Q

To determine

Explain the difference between short-term and long-term investment.

Expert Solution & Answer

Explanation of Solution

Investment: The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment.

Difference between short-term and long-term investments:

Short-Term Investments	Long-term Investments
The investments which are bought to sell or trade within a short time period of less than 90 days, are referred to as short-term investments.	The investments which are bought to hold for longer time period of more than 6 months are referred to as long-term investments.
These investments are reported as current assets on the balance sheet.	These investments are reported as non-current assets on the balance sheet.

Table (1)

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter A, Problem 1Q

To determine

Explain the difference between short-term and long-term investment.

Expert Solution & Answer

Explanation of Solution

Investment: The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment.

Difference between short-term and long-term investments:

Short-Term Investments	Long-term Investments
The investments which are bought to sell or trade within a short time period of less than 90 days, are referred to as short-term investments.	The investments which are bought to hold for longer time period of more than 6 months are referred to as long-term investments.
These investments are reported as current assets on the balance sheet.	These investments are reported as non-current assets on the balance sheet.

Table (1)

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Answer 5

Chapter A, Problem 1Q

To determine

Explain the difference between short-term and long-term investment.

Expert Solution & Answer

Explanation of Solution

Investment: The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment.

Difference between short-term and long-term investments:

Short-Term Investments	Long-term Investments
The investments which are bought to sell or trade within a short time period of less than 90 days, are referred to as short-term investments.	The investments which are bought to hold for longer time period of more than 6 months are referred to as long-term investments.
These investments are reported as current assets on the balance sheet.	These investments are reported as non-current assets on the balance sheet.

Table (1)

Answer 6

Chapter A, Problem 1Q

To determine

Explain the difference between short-term and long-term investment.

Expert Solution & Answer

Explanation of Solution

Investment: The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment.

Difference between short-term and long-term investments:

Short-Term Investments	Long-term Investments
The investments which are bought to sell or trade within a short time period of less than 90 days, are referred to as short-term investments.	The investments which are bought to hold for longer time period of more than 6 months are referred to as long-term investments.
These investments are reported as current assets on the balance sheet.	These investments are reported as non-current assets on the balance sheet.

Table (1)

Answer 7

Chapter A, Problem 1Q

To determine

Explain the difference between short-term and long-term investment.

Answer 8

Expert Solution & Answer

Explanation of Solution

Investment: The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment.

Difference between short-term and long-term investments:

Short-Term Investments	Long-term Investments
The investments which are bought to sell or trade within a short time period of less than 90 days, are referred to as short-term investments.	The investments which are bought to hold for longer time period of more than 6 months are referred to as long-term investments.
These investments are reported as current assets on the balance sheet.	These investments are reported as non-current assets on the balance sheet.

Table (1)