Question

Complete the following descriptions by selecting the appropriate option. 1. Debt securities reflect a relationship such as investments in notes, bonds, and certificates of deposit. 2. Equity securities reflect an) relationship such as shares of stock issued by companies Short-term investments are securities that (1) management intends to convert to cash within whichever is longer, and (2) are readily convertible to Long-term investments in securities are defined as those securities that are convertible to cash or are to be converted into cash in the short term.

Answer 1

1 ) Debt Securities reflects a brrect relationship such as Investments in noles. bonds & certificala of deposit 3) Equity Sewribes reflects an Indirect relationship such as shares issued by company. 3 short term Investments are severites that Ci management intends to convert cash within 6 months com less than one years which are convertible to cash 44 Long term Investment in Seurtes that are more than 1 year (and 6month au converted into cash, no Toomal Entries of bure co for Year Ending 2017 particular orbit & 1 credit & a) Rip Stock alc Dr $ 10,000 Brokerage ale or To Coh 4. $ 10,080 (Berry Sharee purchand & lo Brokerage paid

or $1,000 lo $100 I septy | 6 cash dividend ale 1. To Rip Share al | CBeing divided recewed) octs, I c) cash ale a To Rip ale she To Bokомер (Being Shares sold Dr & 7000 t ha 7490