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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Answer 1

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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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Swifty Supply Co. has the following transactions related to notes receivable during the last 2 months of 2027. The company does not make entries to accrue interest except at December 31. Nov. 1 Loaned $30,000 cash to Manny Lopez on a 12 month, 10% note. Dec. 11 Sold goods to Ralph Kremer, Inc., receiving a $85,500, 90-day, 8% note. 16 Received a $87,840, 180 day. 10% note to settle an open account from Joe Fernetti. 31 Accrued interest revenue on all notes receivable. (a) Journalize the transactions for Swifty Supply Co. (Ignore entries for cost of goods sold.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Use 360 days for cal in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit

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Howard James started a business in 2011 in Jamaica and has been operating in the wholesale/retail industries, where he buys and sells household items to the local market. In 2012, he expanded his business operations and opened two other businesses in Trinidad and Tobago and Antigua and Barbuda, respectively. The annual sales of the respective businesses in 2015 are: Jamaica: J$3,000.00 Trinidad and Tobago: TT$251,000.00 Antigua and Barbuda: $299.00 Mr. James failed to register his business for VAT/GCT as specified by the respective Sales Tax Acts and Regulations. He stated that there is no need for his businesses to be registered because their sales are under the VAT thresholds and thus not required to be registered. a) You are to advise Mr. James if his decision not to register his businesses is justifiable. b) Search the respective VAT Acts for the 3 countries and advise Mr. James of the benefits of being a registered taxpayer; also the penalties for not registering for VAT/GCT.

Answer 2

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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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Check out a sample textbook solution

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Answer 3

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.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

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