About This Chapter
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
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.
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.
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.
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.
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.
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Other chapters within the Accounting 202: Intermediate Accounting II course
- Accounting for Fixed & Intangible Assets
- Accounting for Liabilities & Contingencies
- Accounting for Bonds & Notes Payable
- Accounting for Operating & Capital Leases
- Accounting for Shareholder Equity & Comprehensive Income
- Cash Flows & Disclosures
- Accounting for Corporate Income Taxes
- Pensions & Post-Retirement Benefits
- Identifying & Correcting Errors in Accounting
- Studying for Accounting 202