Q: How Is Treasury Stock Recorded?
A: Treasury stock: Treasury stocks are the company's own stocks reacquired by the company which were…
Q: Indicate whether the following instruments are examples of money market or capital…
A: The money market financial instruments are: U.S treasury bills and dealer commercial paper
Q: The way in which the price of securities determined in Financial Markets is:
A: The correct answer is b. Through frequent interaction between investors.
Q: Describe the possible forms in which a return could be received for bonds, common stock, and…
A: Financial Assets refers to the assets which can be acquired for investment and also be liquidated…
Q: Explain and implement the accounting for stock options.
A: Stock option compensation is an option related to compensation that is given to the key employees of…
Q: debt instrument
A: A Bond is considered as DEBT INSTRUMENT
Q: How are stocks characterized? In detail
A: Stock are important sources of capital and company raises capital through the stock.
Q: Which of the following is an example of a capital market instrument? Money market mutual funds.…
A: Capital markets are where savings and investments are routed between providers (people or…
Q: Which of the following is considered the highest risk investment type? A. Bonds B. Stocks C. Mutual…
A: Bonds are the debt securities issued by corporations to raise money in exchange of fixed interest…
Q: Describe the book value method when converting from bonds to stocks.
A: To increase the marketability of bond issue, a company may include a convertibility feature in the…
Q: hat does the Revaluation reserves on the equity section of the balance sheet represent?
A: Solution:- Equity Equity is what the business owes to its owners. Equity is derived by deducting…
Q: Treasury stock is generally accounted for by the?
A: The question is based on the concept of cost accounting. Companies occasionally buy their own shares…
Q: How is treasury stock reported on the balance sheet? Howis the “gain or loss” on reissued treasury…
A: Treasury stock is the own stock of the company that has been issued but was subsequently reacquired…
Q: Explain the accounting for stock-appreciation rights plans.
A: Share Appreciation Rights (SARs): The awards which offer the employees the right to receive either…
Q: Describe the features of a common stock and explain what you understand by primary and secondary…
A: Common stock is the shares issued by the company to its shareholders. Common shareholders enjoy…
Q: Define Treasury stock method
A: Introduction: The treasury stock technique states that the basic share count utilized in computing a…
Q: Define the term Stock Appreciation Rights.
A: Stock: It refers to a security issued in a form of certificate. It implies the right of ownership of…
Q: Treasury stock is classified as: OA A contra equity account. O B. A contra asset account. OC An…
A: Treasury Stock: It is a stock that gets later repurchased by the company in order to reissue again…
Q: oney market and capital market securities by giving appropriate examples.
A: Introduction : The money market as well as the capital market are the two most significant…
Q: Which of the following is not a money market instrument? a. Equity Shares b. Treasury Bills c.…
A: Money market instrument means those instrument which are issued in money market and generally for…
Q: What is stock receipt? What consideration should be taken in the stock receipt?
A: Receipts are a legal document that serves as documentation of a financial transaction or purchase.…
Q: BOND STOCK
A: Bond is a debt security issued by a company to raise debt fund from outsiders. Stock is a security…
Q: Which are the different categories of liabilities and stockholders' equity and describe them?
A: Liabilities: Liabilities are debts and obligations payable by the corporation. A liability is a…
Q: In association with stocks and bonds, what is par
A: In case of bond, the par value means the face value of the bond. It is the value at which the coupon…
Q: Why are stocks categorized in terms of market capitalization
A: The total market worth of a firm expressed in dollars is its market capitalization, also referred to…
Q: A) What is the difference between trading securities and available for sale securities? B) Describe…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Stockholders' equity consists of:
A: Stockholder's equity mean shareholder's or owner's equity, it is the remaining amount of available…
Q: Treasury stock is generally accounted for by the cost method. O market value method.
A: solution correct answer is cost method explanation under he cost method following entry is passed…
Q: Compare and contrast the stock market from bond market. Stock Market Bond Market
A: Stock market Bond Market 1) Here, equity shares are traded. Here, debt securities are traded.…
Q: What does mean "Marketable securities" in the current asset of a balance sheet?
A: Current Assets are those assets from which the organization can derive economic benefits within one…
Q: Explain the stock market, bond market, capital market and money market
A: STOCK MARKET It is a collection of markets where publicly held companies issue their shares and the…
Q: Where and how is treasury stock reported on the balance sheet?
A: Treasury Stock: A treasury stock is the stock repurchased by an issuer and is intended for…
Q: Explain the main difference between bond and common stock?
A: Debt markets are markets where you contribute within the institutions or trade substances by the…
Q: Distinguish the following financial markets. Provide examples of the type and/or nature of the…
A: A financial market refers to a marketplace that facilitates the exchange of financial assets. These…
Q: Which one of the following is NOT a 'Money Market Instrument? Select one: O a. Treasury Bills O b.…
A: Money market instrument refers to the short-term maturity financial instruments which are having a…
Q: Capital market instruments are all equity securities.
A: Capital Market: The capital market provides the funds of the investors available to the government…
Q: Define stock repurchase
A: STOCK REPURCHASE- ''Stock repurchase or repurchase could be a thanks to come money to investors,…
Q: Which one of the following is not a money market instrument? a. Equity Shares b. Bankers'…
A: money market instruments are short term liquid instruments which are highly liquid.
Q: Who actually owns stock, how is the price of common stock based and how is the price of bonds
A: When company issues the stock of company in the market they are bought by all interested…
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- 6. Unrealized gains and losses on investments in trading securities are reported a. as a current assetb. on the income statementc. on the balance sheet as part of stockholders' equityd. as a contra assetWhich one of the following is referred as Equity finance? а. a. Sale of money market instruments O b. Sale of bonds. О с O c. Purchase of T-Bills. O d. Issue of sharesWhich of the following is an example of long term instruments? (select all that apply) a. Asset backed securities b. Commercial paper С. Repo d. Treasury bill
- Trading securities, by definition, are properly classified in the statement of financial position as: Select one: O a. Shareholders' equity O b. Other assets O c. Intangibles O d. Current assetsFor investments in equity securities, which will result in recording income based on the income of the investee? Select one: a. Held-to-maturity classification b. Trading classification O C. Available-for-sale classification O d. Equity method of accounting1. Investments in debt and equity securities that are held for current resale by banks and stockbrokerage firms are termed a. available-for-sale securitiesb. trading securitiesc. held-to-maturity securitiesd. marketable securities
- ASSETS LIABILITIES AND CAPITALa. Current assets b. Investments c. Plant and equipment d. Intangiblese. Other assets f. Current liabilities g. Long-term liabilitiesh. Preferred stock i. Common stock j. Additional paid-in capitalk. Retained earningsl. Items excluded from balance sheetUsing the letters above, classify the following accounts according to the preferred and ordinary balance sheet presentation. _____ 1. Bond sinking fund_____ 2. Common stock distributable_____ 3. Appropriation for plant expansion_____ 4. Bank overdraft_____ 5. Bonds payable (due 2010)_____ 6. Premium on common stock_____ 7. Securities owned by another company which are collateral for that company's note_____ 8. Trading securities_____ 9. Inventory_____ 10. Unamortized discount on bonds payable_____ 11. Patents_____ 12. Unearned revenueDetermine if the following, if stocks or bonds 1. Its buyers receive return called dividend. a. Stocks b. Bonds 2. It is paid based on its redemption value. a. Stocks b. Bonds 3. It is said to be redeemed at par if face value equals redemption value a. Stocks b. Bonds 4. It is represented by a certificate which is proof of ownership. a. Stocks b. Bonds 5. It grants credit to a company. a. Stocks b. Bonds 6. It represents a claim on the company's assets and earnings. a. Stocks b. Bonds 7. Its buyers become lenders to the company. a. Stocks b. Bonds 8. It is a written contract between the borrower and the lender. a. Stocks b. Bonds 9. Some owners of it earn voting rights to some important company decisions. a. Stocks b. Bonds 10. Some owners of it earn voting rights to some important company decisions. a. Stocks b. BondsAccounting type Question: Securities premium reserve account is shown on the liabilities side in the balance sheet under the heading A. Reserves and surplus B. Current liabilities and provisions C. Share capital D. All of these
- Financial Market for previously issued securities are bought sold in: a. Secondary market O b. Primary market C. Money market O d. Capital marketIdentify the account(s) needed to enter the transaction. Indicate whether entry is debit (DR) or credit (CR). 1. Declared stock dividend based on market price or lower than par ______________ 2. Distribution of no.1 stock dividends. _______________ 3.Cash sale of bond between interest date _______________ 4. Payment of interest on No. 3 above. _______________which of the following instrument are traded in capital market. check all that apply A. commercial paper b. treasury bills c. cooperate bonds d. bankers appectances e. common stock