Identify the reason for which the companies use to purchase securities of other corporations.

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Answer 1

Question

Chapter 13, Problem 1GI

To determine

Identify the reason for which the companies use to purchase securities of other corporations.

Expert Solution & Answer

Explanation of Solution

Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in equity securities such as shares or debt securities such as bonds.

Identify the reason for which the companies use to purchase securities of other corporations are:

To earn additional revenue through investing idle cash in securities.
Type of additional revenue can be earned through the investment in securities are interest, capital gains on sale of investment, or dividends.
To create a strong competition through constructing strategic long-term relationships with the investee. Such investee may be a customer, other corporation, or a supplier. Through this long-term relationship an investing company can exercise significant influence over the investee’s activities.

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Answer 2

Question

Chapter 13, Problem 1GI

To determine

Identify the reason for which the companies use to purchase securities of other corporations.

Expert Solution & Answer

Explanation of Solution

Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in equity securities such as shares or debt securities such as bonds.

Identify the reason for which the companies use to purchase securities of other corporations are:

To earn additional revenue through investing idle cash in securities.
Type of additional revenue can be earned through the investment in securities are interest, capital gains on sale of investment, or dividends.
To create a strong competition through constructing strategic long-term relationships with the investee. Such investee may be a customer, other corporation, or a supplier. Through this long-term relationship an investing company can exercise significant influence over the investee’s activities.

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Answer 3

Question

Chapter 13, Problem 1GI

To determine

Identify the reason for which the companies use to purchase securities of other corporations.

Expert Solution & Answer

Explanation of Solution

Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in equity securities such as shares or debt securities such as bonds.

Identify the reason for which the companies use to purchase securities of other corporations are:

To earn additional revenue through investing idle cash in securities.
Type of additional revenue can be earned through the investment in securities are interest, capital gains on sale of investment, or dividends.
To create a strong competition through constructing strategic long-term relationships with the investee. Such investee may be a customer, other corporation, or a supplier. Through this long-term relationship an investing company can exercise significant influence over the investee’s activities.

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Answer 4

Question

Chapter 13, Problem 1GI

To determine

Identify the reason for which the companies use to purchase securities of other corporations.

Expert Solution & Answer

Explanation of Solution

Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in equity securities such as shares or debt securities such as bonds.

Identify the reason for which the companies use to purchase securities of other corporations are:

To earn additional revenue through investing idle cash in securities.
Type of additional revenue can be earned through the investment in securities are interest, capital gains on sale of investment, or dividends.
To create a strong competition through constructing strategic long-term relationships with the investee. Such investee may be a customer, other corporation, or a supplier. Through this long-term relationship an investing company can exercise significant influence over the investee’s activities.

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Answer 5

Chapter 13, Problem 1GI

To determine

Identify the reason for which the companies use to purchase securities of other corporations.

Expert Solution & Answer

Explanation of Solution

Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in equity securities such as shares or debt securities such as bonds.

Identify the reason for which the companies use to purchase securities of other corporations are:

To earn additional revenue through investing idle cash in securities.
Type of additional revenue can be earned through the investment in securities are interest, capital gains on sale of investment, or dividends.
To create a strong competition through constructing strategic long-term relationships with the investee. Such investee may be a customer, other corporation, or a supplier. Through this long-term relationship an investing company can exercise significant influence over the investee’s activities.

Answer 6

Chapter 13, Problem 1GI

To determine

Identify the reason for which the companies use to purchase securities of other corporations.

Expert Solution & Answer

Explanation of Solution

Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in equity securities such as shares or debt securities such as bonds.

Identify the reason for which the companies use to purchase securities of other corporations are:

To earn additional revenue through investing idle cash in securities.
Type of additional revenue can be earned through the investment in securities are interest, capital gains on sale of investment, or dividends.
To create a strong competition through constructing strategic long-term relationships with the investee. Such investee may be a customer, other corporation, or a supplier. Through this long-term relationship an investing company can exercise significant influence over the investee’s activities.

Answer 7

Chapter 13, Problem 1GI

To determine

Identify the reason for which the companies use to purchase securities of other corporations.

Answer 8

Expert Solution & Answer

Explanation of Solution

Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in equity securities such as shares or debt securities such as bonds.

Identify the reason for which the companies use to purchase securities of other corporations are:

To earn additional revenue through investing idle cash in securities.
Type of additional revenue can be earned through the investment in securities are interest, capital gains on sale of investment, or dividends.
To create a strong competition through constructing strategic long-term relationships with the investee. Such investee may be a customer, other corporation, or a supplier. Through this long-term relationship an investing company can exercise significant influence over the investee’s activities.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 13 - Prob. 1GI Ch. 13 - Provide brief definitions for the following terms:...Ch. 13 - What are the three categories of investments in...Ch. 13 - Prob. 4GI Ch. 13 - Prob. 5GI Ch. 13 - Identify the accounting methods a company uses for...Ch. 13 - Briefly summarize the accounting for an investment...Ch. 13 - Prob. 8GI Ch. 13 - Prob. 9GI Ch. 13 - Prob. 10GI

Identify the reason for which the companies use to purchase securities of other corporations.

Identify the reason for which the companies use to purchase securities of other corporations.

Explanation of Solution

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Chapter 13 Solutions