On Sale of Mutual Fund, We credit Investment Account by which value?
Answers
Explanation:
investment ac is real ac because it is a type of assets. discount recievable ac is nominal ac because it is a type of income.
To record this in a journal entry, debit your investment account by the purchase price and credit your cash account by the same amount. For example, if your small business buys a 40-percent stake in one of your suppliers for $400,000, you would debit the investment account and credit cash each by $400,000.
Answer:
A. Current Investments – Current Investments are investments which by their nature are readily realizable and are intended to be held for less than a year from the date when such investment is done.
B. Long-Term Investments – Long-term investments are investments other than the current investments, even though they might be freely marketable.
Explanation:
These processes include: Calculating the value of its investment portfolio on a daily basis—known as the net asset value (NAV). Anticipating and recording all income, such as dividends and interest. Recording accruing interest on bonds and other similar fixed income securities held in the investment portfolio.