Held-to-maturity security : The debt securities which are held by the investor with an intent to hold the investment till its maturity, are referred to as held-to-maturity securities. Trading securities : These are short-term investments in debt and equity securities with an intention of trading and earning profits due to changes in market prices. Available-for-sale (AFS) securities : These are short-term or long-term investments in debt and equity securities with an intention of holding the investment for some strategic purposes like meeting liquidity needs, or manage interest risk. To indicate : The information pertaining to the investments to be disclosed in the financial statements
Held-to-maturity security : The debt securities which are held by the investor with an intent to hold the investment till its maturity, are referred to as held-to-maturity securities. Trading securities : These are short-term investments in debt and equity securities with an intention of trading and earning profits due to changes in market prices. Available-for-sale (AFS) securities : These are short-term or long-term investments in debt and equity securities with an intention of holding the investment for some strategic purposes like meeting liquidity needs, or manage interest risk. To indicate : The information pertaining to the investments to be disclosed in the financial statements
Solution Summary: The author explains that held-to-maturity securities are short-term investments in debt and equity securities with an intention of trading and earning profits due to changes in market prices. Available-for-sale (AFS)
Held-to-maturity security: The debt securities which are held by the investor with an intent to hold the investment till its maturity, are referred to as held-to-maturity securities.
Trading securities: These are short-term investments in debt and equity securities with an intention of trading and earning profits due to changes in market prices.
Available-for-sale (AFS) securities: These are short-term or long-term investments in debt and equity securities with an intention of holding the investment for some strategic purposes like meeting liquidity needs, or manage interest risk.
To indicate: The information pertaining to the investments to be disclosed in the financial statements
How should an item of information that helps explain the riskiness of the Investments account reported on the balance sheet be communicated in the financial report?
Identify investments as an investment in either debt (D) securities or equity (E) securities. Certificate of deposit
For which of the following securities will unrealized holding gains or losses be recorded as other comprehensive income? Enter 1, 2, 3, or 4 that represents the correct answer.
Debt investments, trading.
Debt investments, held-to-maturity.
Equity investments, trading.
Equity investments, available-for-sale.
Chapter 12 Solutions
GEN COMBO LOOSELEAF INTERMEDIATE ACCOUNTING; CONNECT ACCESS CARD