Term
| Journal Entry to record the purchase of investment securities |
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Definition
Investment in bonds (face amount) XXX
Discount on bond investment XXX
Cash (price paid fo the bonds) XXX |
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Term
| Effective interest on debt |
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Definition
| Market rate of interest multiplied by the outstanding balance of the debt |
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Term
| Held to maturity investments |
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Definition
| Debt securities for which the investor has the positive intent and ability to hold to maturity |
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Term
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Definition
| Cost adjusted for subsequent growth of the investee |
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Term
| Securities available for sale |
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Definition
| Debt of equity securities not classified as either securities held-to-maturity or trading securities (typically securities whose sale depends on market factors and financial conditions of the company) |
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Term
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Definition
| Debt of equity securities held for immediate resale |
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Term
| Investment revenue journal entry |
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Definition
Cash (stated rate x face amt) XXX
Discount on bond investment XXX
Investment revenue XXX |
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Term
| Journal entry to record the purchase of investment securities |
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Definition
Investment in notes XXX
Cash XXX |
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Term
| Journal entry to record the sale of notes - realized gains and losses are included in earnings |
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Definition
Cash XXX
Investment in notes XXX
Gain/Loss on sale of investments XXX |
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Term
| Journal entry to adjust investments to fair value |
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Definition
Fair Value adjustment XXX
Net unrealized holding gains and
losses XXX |
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Term
| Why are financial futures, interest rate swaps, forward contracts, and options are financial instruments that are often call derivatives |
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Definition
| Because the derive their values or contractually required cash flows from some other security or index |
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Term
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Definition
| used when an investor can't control, but can significantly influence, the investee |
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Term
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Definition
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Term
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Definition
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Term
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Definition
| Governs the acquistion of assets |
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