Learning Team A
Global Business Financial Environment
ACC/300
Brandy Havens
Alesia Batiste
GM Motors uses SEC filings (US Securities and Exchange Commissions). Available-for-sale securities are one type of investment a company can make. Available-for-sale securities are any security not classified as a trading security or held to maturity security. These can either be debt or equity securities, however, the accounting is the same for each. An accountant must properly account and report these securities on the company's financial statements. Accountants revalue available-for-sale securities each year and have to report unrealized gains or losses. These unrealized gains or losses are reported as other comprehensive income. Plan on your …show more content…
General Motors is very open about its investing procedures but some elements may be hidden to protect its investors in the future. The equity of the organization would be determined by the amount of assets verses the amount of liabilities, as long as General Motors decides to use its capital earned from sales to pay its liabilities their equity would be in good standing. The decision to purchase debt securities would come from the organization determining if the return on investment would be significant enough to do so, debt securities are less risky that other forms of investment but more risky that purchasing cash investments. When looking at risk verses reward cash is king in the decision for an organization to invest its …show more content…
Credits
Global Business Financial Environment
ACC/300
Brandy Havens
Alesia Batiste
GM Motors uses SEC filings (US Securities and Exchange Commissions). Available-for-sale securities are one type of investment a company can make. Available-for-sale securities are any security not classified as a trading security or held to maturity security. These can either be debt or equity securities, however, the accounting is the same for each. An accountant must properly account and report these securities on the company's financial statements. Accountants revalue available-for-sale securities each year and have to report unrealized gains or losses. These unrealized gains or losses are reported as other comprehensive income. Plan on your …show more content…
General Motors is very open about its investing procedures but some elements may be hidden to protect its investors in the future. The equity of the organization would be determined by the amount of assets verses the amount of liabilities, as long as General Motors decides to use its capital earned from sales to pay its liabilities their equity would be in good standing. The decision to purchase debt securities would come from the organization determining if the return on investment would be significant enough to do so, debt securities are less risky that other forms of investment but more risky that purchasing cash investments. When looking at risk verses reward cash is king in the decision for an organization to invest its …show more content…
Credits