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Business Accounting FINANCIAL ACCT.FUND.(LOOSELEAF)

Short Term Investments: Short term investments are basically the type of investments in which the funds are blocked for comparatively much lesser time period than the long term investments. Also, such investments generate output within a very short time span but their value, on the other hand also is comparatively lesser than the long term investments. The idea behind the motive of short term investments is to promote liquidity so that the investors who require funds within a couple of months or a year may invest in them. Generally, the maximum period of a short term investment is one year. Trading Securities: An active investment in debt or equity to earn short term profits or gains is known as trading securities. Also, trading securities are divided on the basis of the motive behind them. There are three different aspects of trading securities that are trading, for sale and holding till maturity. The trading securities are traded in open market and are always valued at fair market value in the books of accounts. Short-term investments in trading securities are a part of short term assets and are valued at their current market value. As by its very basic nature the trading securities are generally meant to be sold within a short period of time, so any incomes or losses due to such events would form part of the income statement under retained earnings . And trading securities which are available for sale, such gains and losses would form part of balance sheet under shareholder's equity. There is comparatively longer time for available-for-sale securities to be sold than trading securities, there is a greater scope for changes in the fair market value of the same. The difference between the in available-for-sale securities and the manner of recording it.

Short Term Investments: Short term investments are basically the type of investments in which the funds are blocked for comparatively much lesser time period than the long term investments. Also, such investments generate output within a very short time span but their value, on the other hand also is comparatively lesser than the long term investments. The idea behind the motive of short term investments is to promote liquidity so that the investors who require funds within a couple of months or a year may invest in them. Generally, the maximum period of a short term investment is one year. Trading Securities: An active investment in debt or equity to earn short term profits or gains is known as trading securities. Also, trading securities are divided on the basis of the motive behind them. There are three different aspects of trading securities that are trading, for sale and holding till maturity. The trading securities are traded in open market and are always valued at fair market value in the books of accounts. Short-term investments in trading securities are a part of short term assets and are valued at their current market value. As by its very basic nature the trading securities are generally meant to be sold within a short period of time, so any incomes or losses due to such events would form part of the income statement under retained earnings . And trading securities which are available for sale, such gains and losses would form part of balance sheet under shareholder's equity. There is comparatively longer time for available-for-sale securities to be sold than trading securities, there is a greater scope for changes in the fair market value of the same. The difference between the in available-for-sale securities and the manner of recording it.

Solution Summary: The author explains that short-term investments generate output within a very short time span but their value is comparatively lesser than the long term investments. Trading securities are divided on the basis of the motive behind them.

FINANCIAL ACCT.FUND.(LOOSELEAF)

FINANCIAL ACCT.FUND.(LOOSELEAF)

7th Edition

ISBN: 9781260482867

Author: Wild

Publisher: MCG

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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 C, Problem 3DQ

To determine

Short Term Investments:

Short term investments are basically the type of investments in which the funds are blocked for comparatively much lesser time period than the long term investments. Also, such investments generate output within a very short time span but their value, on the other hand also is comparatively lesser than the long term investments. The idea behind the motive of short term investments is to promote liquidity so that the investors who require funds within a couple of months or a year may invest in them. Generally, the maximum period of a short term investment is one year.

Trading Securities:

An active investment in debt or equity to earn short term profits or gains is known as trading securities. Also, trading securities are divided on the basis of the motive behind them. There are three different aspects of trading securities that are trading, for sale and holding till maturity. The trading securities are traded in open market and are always valued at fair market value in the books of accounts.

Short-term investments in trading securities are a part of short term assets and are valued at their current market value. As by its very basic nature the trading securities are generally meant to be sold within a short period of time, so any incomes or losses due to such events would form part of the income statement under retained earnings. And trading securities which are available for sale, such gains and losses would form part of balance sheet under shareholder's equity. There is comparatively longer time for available-for-sale securities to be sold than trading securities, there is a greater scope for changes in the fair market value of the same.

The difference between the in available-for-sale securities and the manner of recording it.

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Chapter C, Problem 2DQ

Chapter C, Problem 4DQ

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Chapter C Solutions

FINANCIAL ACCT.FUND.(LOOSELEAF)

Ch. C - Prob. 1MCQ Ch. C - Prob. 2MCQ Ch. C - Prob. 3MCQ Ch. C - Prob. 4MCQ Ch. C - Prob. 5MCQ Ch. C - Prob. 1DQ Ch. C - Prob. 2DQ Ch. C - Prob. 3DQ Ch. C - Prob. 4DQ Ch. C - Prob. 5DQ

Ch. C - Prob. 6DQ Ch. C - Prob. 7DQ Ch. C - Prob. 8DQ Ch. C - Prob. 9DQ Ch. C - Prob. 10DQ Ch. C - Prob. 11DQ Ch. C - Prob. 12DQ Ch. C - Prob. 13DQ Ch. C - Prob. 14DQ Ch. C - Prob. 1QS Ch. C - Prob. 2QS Ch. C - Prob. 3QS Ch. C - Prob. 4QS Ch. C - Prob. 5QS Ch. C - Prob. 6QS Ch. C - Prob. 7QS Ch. C - Prob. 8QS Ch. C - Prob. 9QS Ch. C - Prob. 10QS Ch. C - Prob. 11QS Ch. C - Prob. 12QS Ch. C - Prob. 13QS Ch. C - Prob. 14QS Ch. C - Prob. 15QS Ch. C - Prob. 16QS Ch. C - Prob. 17QS Ch. C - Prob. 18QS Ch. C - Prob. 1E Ch. C - Prob. 2E Ch. C - Prob. 3E Ch. C - Prob. 4E Ch. C - Prob. 5E Ch. C - Prob. 6E Ch. C - Prob. 7E Ch. C - Prob. 8E Ch. C - Prob. 9E Ch. C - Prob. 10E Ch. C - Transactions in held-to-maturity, trading, and...Ch. C - Prob. 12E Ch. C - Prob. 13E Ch. C - Prob. 14E Ch. C - Prob. 15E Ch. C - Prob. 16E Ch. C - Prob. 17E Ch. C - Prob. 1PSA Ch. C - Prob. 2PSA Ch. C - Prob. 3PSA Ch. C - Prob. 4PSA Ch. C - Prob. 5PSA Ch. C - Prob. 6PSA Ch. C - Prob. 1PSB Ch. C - Prob. 2PSB Ch. C - Prob. 3PSB Ch. C - Prob. 4PSB Ch. C - Prob. 5PSB Ch. C - Prob. 6PSB Ch. C - Prob. 1SP Ch. C - Prob. 1GLP Ch. C - Prob. 2GLP Ch. C - Prob. 1AA Ch. C - Prob. 2AA Ch. C - Prob. 3AA Ch. C - Prob. 1BTN Ch. C - Prob. 2BTN Ch. C - Prob. 5BTN

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