Accounting for marketable securities

(Explanations)

Learning objectives:

  • Explain and give examples of marketable securities.
  • Prepare journal entries for the purchase and sale of marketable securities.
  • Explain how revenue from marketable securities is recognized in books of accounts.
  • Prepare journal entries to adjust marketable securities to their market value (mark to market concept).
  • Explain how marketable securities are reported in the balance sheet on a particular date.

Number of pages: 5; Approximate time required: 1 – 1.5 hours

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