Please describe how to account for market value and unrealized gains and losses for each of these investment categories: held-to-maturity, trading, and available-for-sale.
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Please describe how to account for market value and unrealized gains and losses for each of these investment categories: held-to-maturity, trading, and available-for-sale.
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- choose the correct answer: Equity security acquired for trading should be measured at reporting date a. cost, being the purchase price b. cost, being the purchase price plus transaction costs c. fair value, with change in FV taken through profit or loss. d. fair value, with change in FV taken through other comprehensive income.GAAP requires trading and available-for-sale investments to be reported at their Group of answer choices net realizable value historical cost fair valueThe account Unrealized Gain (Loss) on Trading Investments should be included on the
- Which types of investments are valued at amortized cost? Explain the rationale for this accounting.Calculate accrual accounting rate of return based on net initial investment.What is the default classification for an equity investment? A Fair value through profit or loss B Fair value through other comprehensive income C Amortised cost D Net proceeds
- Which of the following may take the form of dividend income and/or capital appreciation? a. bond investments b.gain from an investment c.equity investments d.expected rate of returnExplain the meaning and composition of the "return" of a financial investment.Define the terms “book-value capital structure,” “market-value capital structure,” and“target capital structure,” and explain why they differ from one another.
- Describe the Procedures used to determine the rate of return internal to nonsimple investments?Does the accounting (book) rate of return (ARR) method provide a valid (or, meaningful) measureof the return on investment? How about the investment’s internal rate of return (IRR)?how value drivers (Return on Equity, Net Profit Margin, and Total Asset Turnover) are related to financial statement analysis?