1. Investments in debt and equity securities that are held for current resale by banks and stockbrokerage firms are termed a. available-for-sale securities b. trading securities c. held-to-maturity securities d. marketable securities

1. Investments in debt and equity securities that are held for current resale by banks and stockbrokerage firms are termed a. available-for-sale securities b. trading securities c. held-to-maturity securities d. marketable securities

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 17GI

See similar textbooks

Related questions

Q: Define the term trading debt investments.

A: Investment is an asset or an item purchased today in the hope that it will generate income in the…

Q: All institutions and procedures for bringing buyers and sellers of shares, debentures, bonds,…

A: Financial market means the market where buyer and seller of securities meet.

Q: Which one of the following is referred as debt finance? O a. Purchase of T-Bills. b. Sale of bonds.…

A: Debt financing is when a company raises money with the use of debt instruments.

Q: The process of packaging and/or selling mortgages which are then used to back publicly traded debt…

A: Securitization is defined as the process of converting assets into marketable securities. The main…

Q: Financial Market for previously issued securities are bought sold in: a. Secondary market b. Primary…

A: Capital market is the market, where funds required for long term investment will be bought from the…

Q: Which of the following is an example of long term instruments? (select all that apply) a. Asset…

A: Long Term Instruments are the instruments which are issues for the longer time period, generally…

Q: Explain accounting for investments in equity securities.

A: An equity security is an investment in stock issued by another company. The accounting for an…

Q: Why would a company invest in debt or equity securities?

A: Debt securities: The financial instruments which are bought by investors, or corporations, or mutual…

Q: Methods/instruments that banks use to hedge the risks pertaining trading securitie

A: Hedging is the process of risk management through which an investor mitigated and reduce its risks…

Q: Marketable securities bought and held primarily for sale in the near term are classified as: a)…

A: Marketable securities are securities which is unrestricted and can be bought or sold on a public…

Q: Explain how trading debt securities are accounted forand reported.

A: Trading securities: It refers to the buying and selling of short-term debt or equity securities to…

Q: Distinguish between the accounting treatment for marketable versus nonmarketable equity securities.

Q: Describe the types of debt or equity securities.

A: Investments: Companies invest in stocks and bonds of other companies or governmental entity to…

Q: Among the following five types of investments: Held-to-maturity, debt investment Trading, debt…

A: Other comprehensive income (OCI) is a type of reserve that the company has from its unrealized gain.…

Q: On a balance sheet, what valuation must be reported for short-term debt investments in trading…

A: Short term debt investments are those debt funds or mutual funds that are obtained for a short…

Q: For each case of a financial asset that is not related to one another, explain (must be accompanied…

A: Step 1 Financial assets are the assets which have the following characteristic Contractual…

Q: Which of the following can be categorized as Short term sources of finance ?i Equity Sharesii Trade…

A: Short term sources are finances are those sources of finance for the business which is available for…

Q: Describe the accounting for investments in debt securities.

A: Debt securities: A debt security is a type of investment tool in which the bonds are issued by a…

Q: Clearly explain the difference between debt securities market and equity securities market

A: Equity securities market is the place where equities of corporates are traded, i.e. purchased and…

Q: Identify investments as an investment in either debt (D) securities or equity (E) securities. Apple…

A: Investment in equity securities means investment for the ownership rights of the company and these…

Q: What does the book value of debt and equity refer to? O A. The par values of common stock and the…

A: The par value of stock is the price which is usually set at when the stock is issued. It is present…

Q: Explain the Debt Investments Classified as Trading Securities.

A: Debt: A debt is an obligation that requires on entity called the debtor to pay back a borrowed sum…

Q: A market where investors trade previously issued securities without the issuing companies'…

A: Stock market is a market were purchasing and selling of the stocks will be done.

Q: Among the following five types of investments: Held-to-maturity, debt investment Trading, debt…

A: Ans: Option 1- C and E

Q: Indicate how unrealized holding gains and losses shouldbe reported for debt investments classified…

A: Unrealized holding gains and losses: An unrealized gain is a profit recorded on paper results from…

Q: A) What is the difference between trading securities and available for sale securities? B) Describe…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Discuss and explain three reasons that companies invest in debt and equity securities.

A: A debt investment entails lending money to a company or entity in exchange for the promise of…

Q: Distinguish the following financial markets. Provide examples of the type and/or nature of the…

A: A financial market refers to a marketplace that facilitates the exchange of financial assets. These…

Q: Which one of the following is referred as Equity finance? O a. Sale of money market instruments O b.…

A: Equity refers to the amount which is being invested or owned by shareholders means the owner of the…

Q: Identify which refers to the relationship of interest and time of maturity of securities.

A: interest refers to the return that an investor gets for investing his money in the security or…

Q: Identify investments as an investment in either debt (D) securities or equity (E) securities. Apple…

A: Debt securities are those securities which provides rights of interest payments to the holders of…

Q: Identify and explain the different types of classificationsfor investments in equity securities.

Q: Distinguish between equity and debt securities.

A: Equity and debts are the most important forms for fund raising. Equity refers to the investment…

Q: In the balance sheet, the account Discount on Bonds Payable is Group of answer choices added to…

A: The amount that a company received for bond less than the par value of bond is known as discount on…

Question

1. Investments in debt and equity securities that are held for current resale by banks and stockbrokerage firms are termed

a. available-for-sale securities
b. trading securities
c. held-to-maturity securities
d. marketable securities

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

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

Stockholders equity consists of which of the following? A. bonds payable B. retained earnings and accounts receivable C. retained earnings and paid-in capital D. discounts and premiums on bond payable
For investments in equity securities, which will result in recording income based on the income of the investee? Select one: a. Held-to-maturity classification b. Trading classification O C. Available-for-sale classification O d. Equity method of accounting
Where are debt investments classed as trading securities, available-for-sale securities, and held-to-maturity securities recorded on the asset side of the balance sheet? Explain
Trading securities, by definition, are properly classified in the statement of financial position as: Select one: O a. Shareholders' equity O b. Other assets O c. Intangibles O d. Current assets
Accounting type Question: Securities premium reserve account is shown on the liabilities side in the balance sheet under the heading A. Reserves and surplus B. Current liabilities and provisions C. Share capital D. All of these
If a company have a patent and it will not generate probable future economic benefits, in this case the company will: Select one: a. Derecognition. O b. None of the options. c. Not recorded. O d. Record it as an asset
Where on the asset side of the balance sheet are debtinvestments classified as trading securities, available-forsalesecurities, and held-to-maturity securities reported?Explain.
3. Which of the following categories of investments are reported at their fair values on the balance sheet and have unrealized holding gains and losses included as a separate component of stockholders' equity? a. held-to-maturity debt securitiesb. marketable securitiesc. available-for-sale securitiesd. trading securities
Financial Market for previously issued securities are bought sold in: a. Secondary market O b. Primary market C. Money market O d. Capital market
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.
Held-to-maturity securities: A. All of these choices. B. include stocks as well as bonds. C. may be reported as current or noncurrent assets. D. are reported at fair market value.
6. Unrealized gains and losses on investments in trading securities are reported a. as a current assetb. on the income statementc. on the balance sheet as part of stockholders' equityd. as a contra asset