How does the accounting for investments vary according to the type of investment (i.e., negotiable documents, available-for-sale documents and documents held until maturity)? What are the differences between debt and equity documents?
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Investment documents are discussed in this week’s chapters. How does the accounting for investments vary according to the type of investment (i.e., negotiable documents, available-for-sale documents and documents held until maturity)? What are the differences between debt and equity documents?
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- Which of the following would be included in the financing section? A. loss on sale of investments B. depreciation expense C. increase in notes receivable D. decrease in notes payablePlease show the different debits and credits to an investment account under the equity method of accounting.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?
- Under the column Financial Statement, choose from the list of codes below, the appropriate financial statement where the accounts listed would appear. Financial Statement Code Income Statement I/S Balance Sheet B/S Statement of Owner's Equity O/E b. For the column Balance Sheet Classification, choose the appropriate balance sheet classification from the list of codes below. If the account does not belong on the balance sheet, use the code n/a. Balance Sheet Classification Code Current Assets CA Long-term Investments LTI Property, Plant and Equipment PPE Intangibles I Goodwill G Current Liabilities CL Non-Current Liabilities NCL Owner's Equity OE Not on the Balance Sheet n/a a. b. Accounts in financial statement Financial Statement Balance Sheet Classification Accumulated depreciation – furniture Interest…The account Valuation Allowance for Investments in Common Stock is included on the: A. statement of retained earnings. B. balance sheet as an adjustment to stockholders' equity. C. balance sheet as an adjustment to the investment asset account. D. income statement as other revenue (expense).The equity method of accounting for investments requires a.the investment to be increased by the reported net income of the investee b.the investment to be reported at its original cost c.a year-end adjustment to revalue the stock to lower of cost or market d.the investment to be increased by the dividends paid by the investee
- Most companies pay current liabilities Select one: a. out of current assets. b. by issuing interest-bearing notes payable. C. by issuing stock. d. by creating long-term liabilities.REQUIRED: Prepare and present the following financial statement: Statement of changes in equityFor trading investments, provide the following: Reporting method used How unrealized holding gain or loss is reported How reported on the Balance Sheet How reported on the Income Statement 1 2 3 4
- Which of the following would you find in the financial statements? a) Information about principal, interest, and maturity of long term debt. b) Discussion of the company's results of operations. c) Financial position on a particular date. d) A qualified opinion.Presented below are the captions of Nikos SpA's statement of financial position. Indicate where each of the following items would be classified. Statement of Financial Position Accounts Statement of Financial Position Classification 1. Share capital-preference. 2. Goodwill. 3. Salaries and wages payable. 4. Accounts payable. 5. Buildings. 6. Trading securities. 7. Current portion of long-term debt. 8. Patents. 9. Allowance for doubtful accounts. 10. Accounts receivable. > > > > > > >The account Gain (Loss) on Sale of Investments should be included on the: A. balance sheet as an adjustment to stockholders' equity. B. statement of retained earnings. C. income statement as other revenue (expense). D. balance sheet as an adjustment to the asset account.
