FUNDAMENTAL ACCT PRIN TEXT+CONNECT CODE
15th Edition
ISBN: 9781265564483
Author: Wild
Publisher: MCG
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Chapter 15, Problem 1E
Exercise 15-1
Debt and equity securities and shod- and long-term investments
C1
Complete the following descriptions by filling in the blanks using the tern or phrases a through g.
a. not intended
b. not readily
c. cash
d. operating cycle
e. one year
f. owner
g. creditor
1. Debt securities reflect a _____ relationship such a investments in notes, bonds, and certificates of deposit.
2. Equity securities reflect a(n) ____ relationship such as shares of stock issued by companies.
3. Short-term investments are securities that (1) management intends to convert to cash within ____ _____ or the _____ _____, whichever is longer, and (2) are readily convertible to ____.
4. Long-term investments in securities are defined as those securities that are ____ ____ convertible to cash or are _____ _____ to be converted into cash in the short term.
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Problem 15-1A Recording and adjusting trading debt securities LO P1
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Question 4
Capital markets trade securities that:
I. mature in more than one year.
II. has relatively higher risk of capital loss.
III. must be guaranteed by the federal government.
A. I only.
B. II only.
C. I and II only
D. I and III only
Exercise 16
Regard the problem of capital adequacy under the Solvency II regulation. By given assets and
liabilities the insurer X has calculated quantiles of company's aggregated risk in accordance
with the Solvency II methodology. The results are depicted below:
Quantile's order
Amount of risk (in $ 1000)
0,985
12 000
0,990
16 000
0,995
19 500
0,9995
22 500
X estimates that expected value of the total claims amounts to $ 10 million.
Fill a table below and justify the figures you have inserted.
Items
In $1000
Total liabilities
23 000
Thereof: technical provisions and reserves
?
other liabilities
required shareholders' fund
free assets
?
{Hint: The quantile of order 0,995 defines the required amount of assets. Thus free assets
equal to 3 500. The reserves consist of the expected value of claims and the risk premium,
thus R=10 000+ 6%*(19 500-10 000), Finally, the required shareholder's fund is 8 930.}
Chapter 15 Solutions
FUNDAMENTAL ACCT PRIN TEXT+CONNECT CODE
Ch. 15 - Prob. 1DQCh. 15 - Prob. 2DQCh. 15 - Prob. 3DQCh. 15 - Prob. 4DQCh. 15 - Prob. 5DQCh. 15 - Prob. 6DQCh. 15 - Prob. 7DQCh. 15 - Prob. 8DQCh. 15 - Prob. 9DQCh. 15 - Prob. 10DQ
Ch. 15 - Prob. 11DQCh. 15 - Prob. 12DQCh. 15 - Prob. 13DQCh. 15 - Prob. 14DQCh. 15 - Prob. 15DQCh. 15 - Prob. 16DQCh. 15 - Prob. 17DQCh. 15 - Prob. 1QSCh. 15 - Prob. 2QSCh. 15 - Prob. 3QSCh. 15 - Prob. 4QSCh. 15 - Prob. 5QSCh. 15 - Prob. 6QSCh. 15 - Prob. 7QSCh. 15 - Prob. 8QSCh. 15 - Prob. 9QSCh. 15 - Prob. 10QSCh. 15 - Prob. 11QSCh. 15 - Prob. 12QSCh. 15 - Prob. 13QSCh. 15 - Prob. 14QSCh. 15 - Prob. 15QSCh. 15 - Prob. 16QSCh. 15 - Prob. 17QSCh. 15 - Prob. 18QSCh. 15 - Exercise 15-1 Debt and equity securities and shod-...Ch. 15 - Prob. 2ECh. 15 - Brooks Co. purchases various investments in...Ch. 15 - Prob. 4ECh. 15 - Prob. 5ECh. 15 - Prob. 6ECh. 15 - Prob. 7ECh. 15 - Prob. 8ECh. 15 - Prob. 9ECh. 15 - Prob. 10ECh. 15 - Prob. 11ECh. 15 - Prob. 12ECh. 15 - Prob. 13ECh. 15 - Prob. 14ECh. 15 - Prob. 15ECh. 15 - Prob. 16ECh. 15 - Prob. 17ECh. 15 - Prob. 1APSACh. 15 - Prob. 2APSACh. 15 - Prob. 3APSACh. 15 - Prob. 4APSACh. 15 - Prob. 5APSACh. 15 - Prob. 6APSACh. 15 - Prob. 1BPSBCh. 15 - Prob. 2BPSBCh. 15 - Prob. 3BPSBCh. 15 - Prob. 4BPSBCh. 15 - Prob. 5BPSBCh. 15 - Prob. 6BPSBCh. 15 - Prob. 15SPCh. 15 - Prob. 1GLPCh. 15 - Prob. 2GLPCh. 15 - Prob. 1BTNCh. 15 - Prob. 2BTNCh. 15 - Kasey Hartman is the controller for Wholemart...Ch. 15 - Prob. 4BTNCh. 15 - Prob. 5BTNCh. 15 - Prob. 6BTNCh. 15 - Prob. 7BTNCh. 15 - Prob. 8BTNCh. 15 - Prob. 9BTN
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