Unit 3 Discussion (ACCt1105 Financial Accounting

Investment and Fair Value Accounting:  (ACCT1105 Financial Accounting)

Respond to the questions below:

1. Please mention and explain how companies use cash generated from operations?

2. Explain the difference between Debt Securities and Equity Securities

3.What is the primary objectives of companies investing in temporary Investments?

4. What is long term investment and its strategic purpose?

5.Explain how companies account for the following investments:

a. Less than 20% ownership.

b. Between 20%-50% ownership

c. More than 50% ownership

6. Explain the following concepts:

a. Parent Company

b. Subsidiary Company

c. Consolidated Financial Statements.

d. Trading Securities

e. Fair Value

f. Unrealized Gain or Loss

g. Available for Sale Securities

h. Held to Maturity Securities

i. Dividend Yield

j. Comprehensive Income