Copyright

Ch 2: Accounting for Securities & Investments

About This Chapter

We can help you review accounting for securities and investments or learn more if you're having a difficult time understanding these subjects. Whether you're studying for a test or finishing your homework, the short lessons we've included here are easy to use and accessible any time.

Accounting for Securities & Investments - Chapter Summary

In this chapter, our professional instructors present securities and investment accounting for your self-paced and flexible review. On your computer or mobile device, you can review lessons on short-term investments, held-to-maturity securities and examples of both. At any time while you're studying, you can submit questions to one of our instructors through the Dashboard. The lesson quizzes and chapter test are also a great way to test your understanding or clarify any challenging topics. Once you've finished this chapter, you should be able to complete the following:

  • Discuss the financial statement presentation of securities and investments
  • Outline accounting for derivatives on the financial statement
  • Explain what short-term investments are using examples
  • Identify different types of long-term investments
  • Describe held-to-maturity securities

5 Lessons in Chapter 2: Accounting for Securities & Investments
Test your knowledge with a 30-question chapter practice test
What Are Short-Term Investments? - Definition & Examples

1. What Are Short-Term Investments? - Definition & Examples

Learn more about short-term investments, their definition, time frames, and associated risk. Find out what defines an asset as liquid and what is classified as a short-term investment.

Long-Term Investments: Definition, Types & Examples

2. Long-Term Investments: Definition, Types & Examples

In this lesson, you'll learn to recognize and account for long-term investments. You'll also learn when to use the equity method of accounting and consolidation accounting.

Held-to-Maturity Securities

3. Held-to-Maturity Securities

In this lesson, you'll learn to recognize held-to-maturity (HTM) securities and their proper accounting methods. We'll also explain the difference between HTM securities and other types of investments as they relate to accounting.

Accounting for Derivatives on Financial Statements

4. Accounting for Derivatives on Financial Statements

Let's look at the journal entries and financial impacts for two types of derivatives designed to take some of the risk out of business. One is a futures contract and the other is an interest rate swap.

Financial Statement Presentation of Securities & Investments

5. Financial Statement Presentation of Securities & Investments

In this lesson, you'll learn how to account for investment securities and classify them on your company's balance sheet. You'll also learn when to account for investments with the equity method or when you must use consolidation accounting.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Support