Refer to Exhibit to answer the following questions about Microsoft Corporation investments. a. Microsoft reports unrealized gains
Question:
a. Microsoft reports unrealized gains and unrealized losses on securities. Accordingly, the investment cost basis is marked to market. What type of account is increased or decreased as a result (asset account, liability account, other gain account, other loss account, or equity account)?
b. If Microsoft investments were trading securities, what type of account would have been increased or decreased when the investment account is marked to market?
c. Given that Microsoft designates its securities portfolio as available-for-sale, what possibilities exist for the company to manage earnings using its investments?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
a When availableforsale securities are marked to market an asset account is ...View the full answer
Answered By
Krishna P
I have a strong background in computer science and a passion for digital privacy. I have experience tutoring individuals and small groups in a variety of subjects, including computer programming, data security, and online privacy. In my previous tutoring roles, I have helped students of all ages and skill levels improve their understanding of complex technical concepts and gain the confidence they need to succeed in their studies.
One of my most memorable tutoring experiences was helping a high school student prepare for an advanced placement computer science exam. The student was struggling with the material and feeling overwhelmed, but with my guidance and support, they were able to confidently navigate the exam and earn a high score.
I believe that effective tutoring requires a combination of technical expertise, patience, and the ability to explain complex ideas in a clear and concise manner. I strive to create a comfortable and supportive learning environment for my students, and I am dedicated to helping them achieve their academic and personal goals.
0 Reviews
10+ Question Solved
Related Book For 
Financial Statement Analysis
ISBN: 978-0078110962
11th edition
Authors: K. R. Subramanyam, John Wild
Question Posted:
