exchange with the help of a broker typically the same day as the decision to

Exchange with the help of a broker typically the same

This preview shows page 7 - 10 out of 11 pages.

exchange with the help of a broker, typically the same day as the decision to sell is made. This Photo by Unknown author is licensed under CC BY .
Image of page 7

Subscribe to view the full document.

DESCRIBE HOW DEBT AND STOCK INVESTMENTS ARE REPORTED IN FINANCIAL STATEMENTS Investments in debt securities are classified as trading, available-for-sale, or held-to-maturity securities for valuation and reporting purposes. Stock investments are classified either as trading or available-for-sale securities. Stock investments have no maturity date and therefore are never classified as held-to-maturity securities. Trading securities are reported as current assets at fair value, with changes from cost reported inner income. Available-for-sale securities are also reported at fair value, with the changes from cost reported in stockholders' equity. Available-for-sale securities are classified as short-term or long-term, depending on their expected future sale date. Short-term investments are securities that are (a) readily marketable and (b) intended to be converted to cash within the next year or operating cycle, whichever is longer. Investments that do not meet both criteria are classified as long-term investments
Image of page 8
DESCRIBE HOW DEBT AND STOCK INVESTMENTS ARE REPORTED IN FINANCIAL STATEMENTS
Image of page 9

Subscribe to view the full document.

Image of page 10
  • Spring '16

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes