
Long term investment:
Long term investment is the investment for long period generally for more than one year. The long term investment helps in the purchase of fixed assets, expansion, or for growth of the company. It shows under assets head of the
Equity security:
It is the investment in the stock of another company. Sometime the company may invest in the common stock of another company and earn the huge return from that. Equity security involves high risk as the return is received after all the dues of the company.
Available for sale security:
These securities are different from the held to maturity security. It includes the debt and equity securities. The main reason to purchase this security is to earn interest and dividend on investment.
Journal is the primary record of the business transaction in chronological (date wise) order. Journal Entry contains two effects one is debit and other is credit, under double entry book keeping system.
1.
To explain: Either fair value or cost method used to account for the given transaction in the financial statement.
2.
To prepare: Journal entries to record the transactions.

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Chapter C Solutions
Gen Combo Ll Financial Accounting Fundamentals; Connect Access Card
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