For Each of the Following Scenarios,state the Type of Investment

question 146

Short Answer

For each of the following scenarios,state the type of investment:
1.Available-for-sale debt investment
2.No significant influence equity investment
3.Trading debt investment
4.Significant influence equity investment
5.Held-to-maturity debt investment
6.Controlling interest equity investment
Indicate your answer by placing the correct number next to the scenario.
a.________ Arnold Corp.owns a debt security in Brady Corp.Arnold plans on holding the debt for thirty days.
b.________ Maxwell Inc.owns 70% of the voting stock of Russell Corp.
c.________ Millie Inc.owns a debt security of Auntie Inc.Millie intends to and has the ability to hold the debt security until maturity.

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Definitions:

Money Market Account

A type of savings account that typically offers both higher interest rates and greater withdrawal flexibility compared to regular savings accounts.

Annual Rate

Typically refers to the yearly interest rate or yield on a financial product or investment.

Correcting Entries

Modifications applied to bookkeeping entries to correct mistakes or oversights.

Sales Revenue

Earnings accrued from the transactions of goods or services within a set period.