BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -This investment is initially recorded at cost. At the end of each subsequent accounting period, adjust the recorded investment to its fair value as of the end of the period. Any unrealized holding gains and losses are to be recorded in operating income. This investment can be either a debt or equity instrument.

Detailed explanation-2: -The investment is recorded at historical cost in the asset section of the balance sheet.

Detailed explanation-3: -Under the equity method, the investment is initially recorded at historical cost, and adjustments are made to the value based on the investor’s percentage ownership in net income, loss, and dividend payouts.

Detailed explanation-4: -Entities are required to present the individual amounts for the three categories of debt investments either on the face of the balance sheet or in the notes to the financial statements. Cash flow activities are required to be presented separately for the three categories of debt investments.

Detailed explanation-5: -All debt instruments provide a company with cash that serves as a current asset. The debt is considered a liability on the balance sheet, of which the portion due within a year is a short term liability and the remainder is considered a long term liability.