4.02- Marketable Securities (Available for Sale)

Question 1

Are TRADING SECURITIES considered INVENTORY?

Answer 1

Yes!

Question 2

Are AVAILABLE FOR SALE SECURITIES considered INVENTORY?

Answer 2

No!

Question 3

What are the two types of AVAILABLE FOR SALE SECURITIES?

Answer 3

• Current

- Noncurrent

Question 4

What types of SECURITIES can be considered AVAILABLE FOR SALE SECURITIES?

Answer 4

Equity (Stock)

Debt (Bonds)

Question 5

How are AVS SECURITIES initially recorded? What are they carried at?

Answer 5

• Cost

- Carried at Fair Value

Question 6

Where are UNREALIZED GAINS OR LOSSES recorded for AVS SECURITIES?

Answer 6

Balance Sheet as part of Comprehensive Income

Question 7

What is the name for the CUMULATIVE AMOUNT of UNREALIZED GAINS OR LOSSES for AVS SECURITIES?

Answer 7

Accumulated Other Comprehensive Income

Question 8

Where are REALIZED GAINS OR LOSSES recorded for AVS SECURITIES?

Answer 8

Income Statement, with interest and dividend income

Question 9

What type of ACTIVITY is AVS SECURITIES considered?

Answer 9

Investing