Investment : It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in debt securities such as bonds or equity securities such as shares. To explain: the reasons for companies investing in securities.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter AH, Problem 1Q

To determine

Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in debt securities such as bonds or equity securities such as shares.

To explain: the reasons for companies investing in securities.

Expert Solution & Answer

Explanation of Solution

The reasons for investing in securities are explained below:

To earn returns by investing the excess cash generated by the company.
To generate income from investments in securities
To dominate the competitors or suppliers by gaining controlling interests over them through investments.
To enter into a new industry through investments in other companies’ 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

Please give me answer general accounting question

respond to ceasar Companies make adjusting entries to ensure that their financial statements accurately reflect the true financial position and performance during a specific accounting period. These entries are necessary to account for revenues earned and expenses incurred that may not yet have been recorded in the books. Adjusting entries are typically made at the end of an accounting period, during the preparation of financial statements, as part of the accounting cycle. This step is crucial in aligning the company’s books with the accrual basis of accounting, where revenues and expenses are recognized when they are earned or incurred, rather than when cash is received or paid. By making these adjustments, companies can provide accurate and reliable financial information to stakeholders.

According to the accrual method of accounting, businesses make adjusting entries to ensure that their financial statements are correctly depicting their financial situation and performance. No matter when cash transactions take place, adjusting entries are required to record revenues when they are generated and expenses when they are incurred (Weygandt et al., 2022). In order to guarantee that financial statements present an accurate and impartial picture of their company's financial health, these entries help in bringing financial records into compliance with the revenue recognition and matching standards. In order to account for things like accumulated revenues, accrued expenses, depreciation, and prepaid expenses, adjusting entries are usually made at the conclusion of an accounting period prior to the preparation of financial statements (Kieso et al., 2020). By implementing these changes, businesses avoid making false representations in their financial reports, which enables…

Answer 2

Question

Chapter AH, Problem 1Q

To determine

Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in debt securities such as bonds or equity securities such as shares.

To explain: the reasons for companies investing in securities.

Expert Solution & Answer

Explanation of Solution

The reasons for investing in securities are explained below:

To earn returns by investing the excess cash generated by the company.
To generate income from investments in securities
To dominate the competitors or suppliers by gaining controlling interests over them through investments.
To enter into a new industry through investments in other companies’ 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!

Answer 3

Question

Chapter AH, Problem 1Q

To determine

Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in debt securities such as bonds or equity securities such as shares.

To explain: the reasons for companies investing in securities.

Expert Solution & Answer

Explanation of Solution

The reasons for investing in securities are explained below:

To earn returns by investing the excess cash generated by the company.
To generate income from investments in securities
To dominate the competitors or suppliers by gaining controlling interests over them through investments.
To enter into a new industry through investments in other companies’ 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!

Answer 4

Question

Chapter AH, Problem 1Q

To determine

Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in debt securities such as bonds or equity securities such as shares.

To explain: the reasons for companies investing in securities.

Expert Solution & Answer

Explanation of Solution

The reasons for investing in securities are explained below:

To earn returns by investing the excess cash generated by the company.
To generate income from investments in securities
To dominate the competitors or suppliers by gaining controlling interests over them through investments.
To enter into a new industry through investments in other companies’ 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!

Answer 5

Chapter AH, Problem 1Q

To determine

Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in debt securities such as bonds or equity securities such as shares.

To explain: the reasons for companies investing in securities.

Expert Solution & Answer

Explanation of Solution

The reasons for investing in securities are explained below:

To earn returns by investing the excess cash generated by the company.
To generate income from investments in securities
To dominate the competitors or suppliers by gaining controlling interests over them through investments.
To enter into a new industry through investments in other companies’ securities.

Answer 6

Chapter AH, Problem 1Q

To determine

Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in debt securities such as bonds or equity securities such as shares.

To explain: the reasons for companies investing in securities.

Expert Solution & Answer

Explanation of Solution

The reasons for investing in securities are explained below:

To earn returns by investing the excess cash generated by the company.
To generate income from investments in securities
To dominate the competitors or suppliers by gaining controlling interests over them through investments.
To enter into a new industry through investments in other companies’ securities.

Answer 7

Chapter AH, Problem 1Q

To determine

Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in debt securities such as bonds or equity securities such as shares.

To explain: the reasons for companies investing in securities.

Answer 8

Expert Solution & Answer

Explanation of Solution

The reasons for investing in securities are explained below:

To earn returns by investing the excess cash generated by the company.
To generate income from investments in securities
To dominate the competitors or suppliers by gaining controlling interests over them through investments.
To enter into a new industry through investments in other companies’ securities.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. AH - Prob. 1Q Ch. AH - Prob. 2Q Ch. AH - Prob. 3Q Ch. AH - Prob. 4Q Ch. AH - What is the cost of an investment in stock?Ch. AH - Prob. 6Q Ch. AH - Prob. 7Q Ch. AH - Prob. 8Q Ch. AH - Prob. 9Q Ch. AH - Distinguish between the cost and equity methods of...

Investment : It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in debt securities such as bonds or equity securities such as shares. To explain: the reasons for companies investing in securities.

Videos

Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in debt securities such as bonds or equity securities such as shares.

To explain: the reasons for companies investing in securities.

Explanation of Solution

Want to see more full solutions like this?

Chapter AH Solutions

Investment : It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in debt securities such as bonds or equity securities such as shares. To explain: the reasons for companies investing in securities.

Videos

Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in debt securities such as bonds or equity securities such as shares. To explain: the reasons for companies investing in securities.

Explanation of Solution

Want to see more full solutions like this?

Chapter AH Solutions

Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in debt securities such as bonds or equity securities such as shares.

To explain: the reasons for companies investing in securities.