Marketable Securities

Question 1

What are the three different types of Market Securities?

Answer 1

Trading Securities (HFT - Held for trading), Available for Sale Securities (AFS/AVS), Held to Maturity (HTM)

Question 2

For HFT, What is initial investment recorded?

Answer 2

Recorded at Cost and carried at FMV

Question 3

For HFT, Where are the Gains and Losses Recorded?

Answer 3

Income Statement

Question 4

For HFT, where is it recorded on the Cash Flow?

Answer 4

Operating Activity

Question 5

For AFS, What is initial investment recorded?

Answer 5

Recorded at Cost and carried at FMV

Question 6

For AFS, Where are the Gains and Losses Recorded?

Answer 6

Recorded on the Balance Sheet under Comprehensive Income

Question 7

For AFS, where is it recorded on the Cash Flow?

Answer 7

Investing Activity

Question 8

For HTM, What is initial investment recorded?

Answer 8

Recorded at Cost and carried at Amortized cost

Question 9

For HTM, Where are the Gains and Losses Recorded?

Answer 9

No Gains and Losses

Question 10

For HTM, where is it recorded on the Cash Flow?

Answer 10

Investing Activity

Question 11

GAAP Income Statement

Answer 11

ONTIDENOC, Operating Activity, Nonoperating, Taxes, Income from Cont. Operations, Discontinued Operations, Extraordinary Gain or Loss, Net Income, OCI, Comprehensive Income