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Concept introduction:
Debt securities:
Debt securities are financing instrument which represents the loan taken from the creditor and usually these securities pay defined interest rate on the amount borrowed. The several types of debt instruments are bonds, certificate of deposits,
Equity securities:
Equity securities are financing instrument issued by a company representing the share in the capital financed by the investor. These securities gives right of ownership in the share capital of the company. Equity share holders are paid dividend and share the
Short-term investments:
Short-term investments are investments which are hold for a period of one year or less and which are easily convertible into cash.
Long-term investments:
Long-term investments are investments which are to be hold for a period of more than one year which are not easily convertible into cash in short term.
To choose:
The term that is not used for debt securities.
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Chapter A2 Solutions
Cornerstones of Financial Accounting
- On November 30, Sullivan Enterprises had Accounts Receivable of $145,600. During the month of December, the company received total payments of $175,000 from credit customers. The Accounts Receivable on December 31 was $98,200. What was the number of credit sales during December?arrow_forwardPaterson Manufacturing uses both standards and budgets. For the year, estimated production of Product Z is 620,000 units. The total estimated cost for materials and labor are $1,512,000 and $1,984,000, respectively. Compute the estimates for: (a) a standard cost per unit (b) a budgeted cost for total production (Round standard costs to 2 decimal places, e.g., $1.25.)arrow_forwardQuestion: Gujri Place Clock Shop sold a grandfather clock for $2,250 subject to a 9% sales tax. The entry in the general journal will include a credit to Sales for a) $2,250.00 b) $2,092.50 c) $2,452.50. choose the correct optionarrow_forward
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning