Financial Accounting
A company holds a bond as a held to maturity security. The bond has a face value of \$5,000, a coupon rate of 4%, and was purchased at a premium for \$5,200. How is the bond reported on the balance sheet over time?
A company holds a portfolio of securities, some classified as trading and others as available for sale. How does this classification impact the balance sheet presentation?
What is the primary implication of classifying a bond as held to maturity on the financial statements?
What are the two primary reasons a company might choose to invest in securities?
A company actively trades a stock and plans to sell it within the next month. How should this stock be classified?
At what value are securities initially measured on the financial statements?
You own 100 shares of ABC Corp, purchased at \$20 per share. The company pays a dividend of \$0.50 per share, and you sell the shares at \$25 each. What is your total investment income?
Where are unrealized gains or losses from trading securities reported?
