07 PY Notes to Fin Stmts - APPLE BLOSSOM COLOGNE COMPANY...

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APPLE BLOSSOM COLOGNE COMPANY Notes to Financial Statements Note 1--Summary of Significant Accounting Policies The accounting policies employed by the Apple Blossom Cologne Company are in accordance with generally accepted accounting principles. In those instances where more than one generally accepted accounting principle can be applied, the company has adopted the one it believes most accurately and fairly reflects the situation, as described in the following paragraphs. Investments in Securities --Equity securities are classified as available-for-sale. Debt securities are classified as either available-for-sale or held-to-maturity, depending upon the intent of management. Investments in the available-for-sale portfolio are carried at fair value, normally obtainable from quotations available on securities exchanges. Debt securities in the held-to-maturity portfolio are carried at amortized cost. Premium or discount is amortized using the effective interest method. Unrealized holding gains and losses due to the difference between cost and fair value are included in stockholders' equity. In computing gains and losses, the specific identification method is used to determine cost. Inventories
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This note was uploaded on 10/09/2010 for the course FINANCE fin646 taught by Professor Marry during the Spring '10 term at College of the Bahamas.

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07 PY Notes to Fin Stmts - APPLE BLOSSOM COLOGNE COMPANY...

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