Why are unrealized gains and losses on trading securities reported in the incomestatement?

Q: Which of the following is NOT a purpose of valuing financial securities? a. Valuation is used to…

A: The term securities range from stocks and bonds to derivative contracts of various types such as…

Q: How Is Treasury Stock Recorded?

A: Treasury stock: Treasury stocks are the company's own stocks reacquired by the company which were…

Q: Why do you suppose accounting regulations requirecompanies to report paper losses or gains from…

A: This Statement establishes standards of accounting for exchange-traded futures contracts (other than…

Q: distinguish between dilutive and antidilutive securities, and describe the implications of each for…

A: Diluted Securities are the financial instruments that can be converted into common stock and may…

Q: Briefly describe some of the similarities and differences between GAAP and IFRS with respect to the…

A: Generally Accepted Accounting Principles:   GAAP (Generally Accepted Accounting Principles) is a…

Q: How does the purchase of treasury stock affect the purchaser’s assets and total equity?

A: Treasury stock: It can be defined as the stock that is repurchased or bought back by the issuing…

Q: The way in which the price of securities determined in Financial Markets is:

A: The correct answer is b. Through frequent interaction between investors.

Q: Explain the statement “The money market is necessary but not sufficient for the liquidity of…

A: Money market instruments would be considered as investments under short term securities. These…

Q: Unrealized holding gains and losses on debt securities classified as available for sale would have…

A: Other Comprehensive Income refers to items of income and expenses that are not recognized as a part…

Q: How are unrealized gains/losses on trading securities recorded?

A:

Q: Dividend revenue is recognized for trading securities and available for sale securities even if held…

A: Solution Concept Dividend is recognized in income statement for trading securities if they are held…

Q: Explain the statement “The money market is necessary but not sufficient for the liquidity of…

A: Money market is an organized market which meets short term requirements of the borrowers and…

Q: According to our authors, when is the purchase of stock in one company by another classified as a…

A: Trading security- Classification of securities- There are three different classification: a) held…

Q: e element in the accumulated other comprehensive income section of shareholders' equity. is reported…

A: Available-for-sale securities are debt or equity investments purchased with an intent to sell them…

Q: Which statement is not true?

A: In the above question, there are four statements; we must identify which of the four statements is…

Q: How is treasury stock reported on the balance sheet? Howis the “gain or loss” on reissued treasury…

A: Treasury stock is the own stock of the company that has been issued but was subsequently reacquired…

Q: Which of the following would result from watered shares? overstated capital understated assets…

A: solution : Which of the following would result from watered shares? Correct answer is overstated…

Q: Why might conflicts arise between stockholders and debtholders?

A: A stockholder or a shareholder can be an individual or a company who own one or more shares of a…

Q: Which of the following is not a financing activity: O Issuance of bonds payable O Sale of investment…

A: Introduction: Statement of cash flows: All cash in and out flows are recorded in statement of cash…

Q: What's the connection between financial statements and stock markets?

A: Introduction: Financial reporting and stock markets Financial reports are documents that provide…

Q: ders and debtholders differ in their claim of the firm’s cash flows? How does such a claim…

A: Introduction : In simple words, stock refers to the equity claim in a company under which the holder…

Q: What are the differences between held to Maturity and Held for Trading Securities and what are the…

A: Securities held by an entity can either be held to Maturity or it can be Held for Trading…

Q: Comment on Stock Inspection?

A: A stock (also identified as equity) is a type of security that represents ownership of a portion of…

Q: How do stock repurchases affect the EPS and ROE ratios?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: An important element in accounting for investment securities concerns the distinction between its…

A: Investment securities are those that are acquired with the intention of investing in the future. It…

Q: Under what circumstances is the equity method used to account for an investment in stock?

A:

Q: Why are stocks categorized in terms of market capitalization

A: The total market worth of a firm expressed in dollars is its market capitalization, also referred to…

Q: What is the difference between common stock and retained earnings?

A: Accounting:   Accounting is a system, or a process of collecting and organizing economic…

Q: Determine reasons behind stock repurchases.

A: Stock Repurchases: Stock repurchase also known as share buyback of shares represents the shares…

Q: Realized gains and losses are recorded on the incomestatement for which of the following…

A:

Q: Is preferred stock comparable to long-term debt in any way? Is it comparable to equity in any way?

A: Preferred stocks are the form of shares being issued by a company for increasing its capital. The…

Q: How does market cap effect the stock market?

A: Market capitalization is given by the formula: Market capitalization = Price per share x No. of…

Q: Discuss the impact of investor sentiment on stock returns conditional on economic conditions

A: Investor's sentiment means the attitude of the investors toward different securities or even the…

Q: Cost of Capital

A: INTRODUCTION In simple words cost of capital is the cost incurred for using capital both equity and…

Q: Why are unrealized gains and losses on available-for-sale securities not reported in theincome…

A: Definition: Generally Accepted Accounting Principle (GAAP): Generally Accepted Accounting Principle…

Q: In your opinion, should a public listed company pay attention to the market price of its common…

A: Market prices are decided by the demand and supply(D/S) of the security and investors perception…

Q: explain the differences between equity capital and debt capital. which category would stocks fall…

A: Capital is the requirement of the business. As per requirement of short term or long term…

Q: What is an asset allocation in investing equity securities?

A: Asset allocation means the investment portfolio is splitted based on the asset categories like…

Q: Under what circumstances do we use the equity method to account for an investment in stock?

A: The equity method seems to be an accounting methodology that a firm uses to recognize profits gained…