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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 - With CengageNow
- On December 31, 2023, Berclair Incorporated had 360 million shares of common stock and 12 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2024, Berclair purchased 40 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2024. • Four million treasury shares were sold on October 1. . Net income for the year ended December 31, 2024, was $600 million. Also outstanding at December 31 were 60 million incentive stock options granted to key executives on September 13, 2019. The options were exercisable as of September 13, 2023, for 60 million common shares at an exercise price of $60 per share. During 2024, the market price of the common shares averaged $80 per share. The options were exercised on September 1, 2024. Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2024. (Shares for stock options and conversion of convertible securities have…arrow_forwardLogan product computes it's predetermined overhead rate solution this questionarrow_forwardANSWERarrow_forward
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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