FINANCIAL ACCOUNTINGLL W/CONNECT >IC<
4th Edition
ISBN: 9781259934773
Author: SPICELAND
Publisher: MCG
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Chapter D, Problem 8RQ
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 equity securities such as shares or debt securities such as bonds.
Dividend:
Dividend is a portion of profit distributed by the companies to its shareholders as a reward for the investment by them.
To explain: dividends received from an investment reported under fair value method.
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Students have asked these similar questions
Explain the meaning and composition of the "return" of a financial investment.
Which of the following may take the form of dividend income and/or capital appreciation?
a. bond investments
b.gain from an investment
c.equity investments
d.expected rate of return
What is the default classification for an equity investment?
A Fair value through profit or loss
B Fair value through other comprehensive income
C Amortised cost
D Net proceeds
Chapter D Solutions
FINANCIAL ACCOUNTINGLL W/CONNECT >IC<
Ch. D - Prob. 1RQCh. D - 2.How can an investor benefit from an equity...Ch. D - 3.How might investing activity for a company that...Ch. D - Provide an example of an equity investment in...Ch. D - Prob. 5RQCh. D - Prob. 6RQCh. D - Prob. 7RQCh. D - Prob. 8RQCh. D - Prob. 9RQCh. D - 10.When using the fair value method, we adjust the...
Ch. D - Prob. 11RQCh. D - 12.Under what circumstances do we use the equity...Ch. D - Prob. 13RQCh. D - Prob. 14RQCh. D - Prob. 15RQCh. D - 16.What is the flip side of an investment in debt...Ch. D - Prob. 17RQCh. D - Prob. 18RQCh. D - Prob. 19RQCh. D - Prob. 20RQCh. D - Prob. D.1BECh. D - Prob. D.2BECh. D - Prob. D.3BECh. D - Prob. D.4BECh. D - Prob. D.5BECh. D - Prob. D.6BECh. D - Prob. D.7BECh. D - Prob. D.8BECh. D - Prob. D.9BECh. D - Prob. D.10BECh. D - Prob. D.11BECh. D - Prob. D.12BECh. D - Prob. D.1ECh. D - Prob. D.2ECh. D - Prob. D.3ECh. D - Prob. D.4ECh. D - Prob. D.5ECh. D - Prob. D.6ECh. D - Prob. D.7ECh. D - Prob. D.8ECh. D - Prob. D.9ECh. D - Prob. D.10ECh. D - Prob. D.11ECh. D - Prob. D.1APCh. D - Prob. D.2APCh. D - Prob. D.3APCh. D - Prob. D.4APCh. D - Prob. D.1BPCh. D - Prob. D.2BPCh. D - Prob. D.3BPCh. D - Prob. D.4BP
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Demonstrate how to identify and account for equity investments classified forreporting purposes as fair value through net incomearrow_forwardDescribe the Procedures used to determine the rate of return internal to nonsimple investments?arrow_forwardWhen using the fair value method, we adjust the reported amount of the investment for changes in fair value after its acquisition. How is the change in fair value reflected in the income statement?arrow_forward
- how to decide and choose between investments if capital is rationed? Assess the timing effect of taxation liabilities upon investment appraisal decisions.arrow_forwardExplainValuing REITs as Investments?arrow_forwardWhen are dividends considered a Return of Capital? Give Code Section _______________arrow_forward
- Does the accounting (book) rate of return (ARR) method provide a valid (or, meaningful) measureof the return on investment? How about the investment’s internal rate of return (IRR)?arrow_forwardIn general terms, what is the Capital AssetPricing Model (CAPM)? What assumptions weremade when it was derived?arrow_forwardDo you believe that the cash flows from the sale of an investment should also include the tax effect of the sale? Explain. Do you believe the cash flows from investing activities should include not only the return of investment, but also the return on investment, that is the interest and dividend revenue? Explain.arrow_forward
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