How would a debit balance in Unrealized Gain (Loss) on Available-for-Sale Investments be reported in the financial statements?

Q: Where on the financial statements is an unrealized holding gain or loss on trading investments…

A:

Q: For fi nancial assets classifi ed as available for sale, how are unrealized gains and losses refl…

A: Shareholder's equity: It is the amount of the money that can be returned to the shareholders and it…

Q: how is the acquisition cost of an asset determined when the asset is acquired in exchange for…

A: How is the acquisition cost of an asset determined when the asset is acquired in exchange for…

Q: Is it necessary for an investor to report individual amounts for the three categories of…

A: Held-to-maturity security: The debt securities which are held by the investor with an intent to hold…

Q: What are the different risks associated in the accounting of investments?

A: Answer: There is always risk while auditing and accounting.

Q: Demonstrate how to identify and account for equity investments accounted forunder the equity method

A: Equity method requires the investor to recognize investment income equal to its share percentage…

Q: In what situation will the unrealized holding gain or losson inventory be reported in income?

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Q: Which of the following is NOT correct regarding trading securities *   a. Unrealized holding gains…

A: Securities are defined as those instruments which are used for investment purposes. These can be…

Q: For fi nancial assets classifi ed as trading securities, how are unrealized gains and losses refl…

A: Trading securities are debt or equity assets that management expects to aggressively sell for gain…

Q: How much gain or loss will Bill recognize on the distribution? What is Bill's basis in the inventory…

A: The calculation of gain or loss on distribution and basis in inventory and capital asset is shown…

Q: For trading investments, provide the following: Reporting method used How unrealized holding gain…

A: TRADE INVESTMENT:             Trading is a technique of holding shares and stocks for a short period…

Q: e element in the accumulated other comprehensive income section of shareholders' equity. is reported…

A: Available-for-sale securities are debt or equity investments purchased with an intent to sell them…

Q: What is “comprehensive income”? Its composition varies from company to company but may include which…

A: Comprehensive income: The total of net income and other comprehensive income (OCI) is referred to as…

Q: How should an item of information that helps explain the riskiness of the Investments account…

A: Financial Statement:   A financial statement is the complete record of financial transactions that…

Q: Indicate how unrealized holding gains and losses should be reported for investments classified as…

A: Unrealized holding gains and losses: An unrealized gain is a profit recorded on paper results from…

Q: When is a gain or a loss from a cash flow hedge reported in earnings?

A: Cash flow hedge: If a company uses any derivative to cover the risk due to cash flow changes to…

Q: other comprehensive income

A: Other comprehensive income includes gains or losses that are not included in profit and loss…

Q: Which of the following shall be taken to profit or loss for investments measured at fair value…

A: Other Comprehensive Income - This statement includes all the income which is not earned yet by the…

Q: Under what conditions should investments be classified as current assets? As long-term assets?

A: A current asset is a cash and other assets that are reasonably expected to be converted into cash…

Q: Describe the Principle of Investing in Financial Assets?

A: The financial assets are those assets which are not having a physical existence like stocks, fixed…

Q: The account Unrealized Gain (Loss) on Trading Investments should be included on the

A: Unrealized gains and losses: These are gains and losses which are unrealized and are the result of…

Q: Describe the equity method and the cost method of investor accounting for acquisitions

A: When there is some acquisition is made in some other business or some part of control is purchased,…

Q: Provide some examples of items that would be adjusted directly against equity, rather than being…

A: Following are the example of items that are adjusted directly against equity, rather than being…

Q: If a company has asset classes that include short-term and long-term investments, what criteria…

A: Step 1 As per US GAAP, the proper classification should be required in the financial statements for…

Q: For fi nancial assets classifi ed as available for sale, how are unrealized gains and losses refl…

A: The unrealized gains and losses are realized as Uncomprehensive Income. It’s a line item which…

Q: Any gain or loss on the restatement of non-monetary items is included: In the profit or loss,…

A:

Q: account that measures interest earned on investments might include which of the following terms in…

A: Interest earned is the amount of interest earned over a specific period of time from investments…

Q: For fi nancial assets classifi ed as held to maturity, how are unrealized gains and losses refl…

A: Trading securities are debt or equity assets that management expects to aggressively sell for gain…

Q: Revenues, gains, and investments by owners are allincreases in net assets. What are the distinctions…

A: All revenues, gains, and investments by owners increases the net assets of the business.

Q: How do you decide the liquidity order (what asset come before the other...expenses vs prepaid vs…

A: Classified balance sheet: The main elements of balance sheet assets, liabilities, and stockholders’…

Q: Why isn’t accounting net income used in the net present value method of making capitalbudgeting…

A:

Q: lationship between Income Measurement and Asset Valuation

A: Profit or loss calculation is a simplified form of income measurement. Income is defined by an…

Q: Why are unrealized gains and losses on available-for-sale securities not reported in theincome…

A: Definition: Generally Accepted Accounting Principle (GAAP): Generally Accepted Accounting Principle…

Q: What are the classifications of investments in the statement of financial position?

A: Investment can be defined as the asset that is purchased in the hope of earning some income or…

Q: What is the fair-value option for reporting equity method investments? How do the equity method and…

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: Which are the total interest expense in the statement of profit or loss?

A: Interest expense is the finance cost which is deducted from operating profit i.e. earnings before…

Q: what are the examples of Items that can  be adjusted directly against equity rather than including…

A: Profit or loss account is a revenue account, whereas the equity account is a capital account. Equity…

Q: Explain the adjustments made in the equity method when the fair value of the net assets underlying…

A: When a company follows equity method when it has significant influence over such company.The…

Q: Which of the following would NOT be classified as a current asset on a classified balance sheet?…

A: Current assets are those assets which are in cash or can be converted into cash into short period of…

Q: Please describe how to account for market value and unrealized gains and losses for each of these…

A: Investment in the business which can be mainly classified as two types.  One is debt Investment and…

Q: What effect does the recognition of depreciation expense have on total assets?  On total equity

A: Depreciation expense is recorded by debiting the depreciaton expense account and crediting…