COMMERCE 1AA3 Lecture Notes - Lecture 5: General Ledger, Accounts Receivable, Balance Sheet
Document Summary
Investments that a company plans to hold for one year or less and are also called marketable securities or temporary investments. Investments in marketable securities fall into one of three categories: short-term investments, long-term investments in shares (including available-for-sale*, long-term investments in bonds. Gains/losses are unrealized when the investment has not yet been sold and its reported fair value is more (gain) or less (loss) than the investment cost. Gains/losses are realized when the investment is sold for more (gain) or less (loss) than the investment carrying amount. Receivables monetary claims against others (2 major are accounts receivable and notes receivable: accounts or trade receivables are amounts collectible from customers from the sale of goods and services. Individual customer"s account balances may be found in the account receivable subsidiary ledger which balance to a control account in the general ledger.
