Please respond to natalia with 250 words
Investments are assets kept to generate income by dividends, interest, and rentals and capital appreciation, and other benefits to the investing company. Investments are not assets held in stock in exchange. Current and Long-Term Investments are the two types of investments available. Current investments must be reported in financial statements at the lower expense or fair value, which is calculated either by investment category or by individual investment, but not on an aggregate basis. Long-term investments must always be reported at their expense in financial statements. However, as the value of a long-term investment decline, the carrying sum is decreased to reflect the loss, even though it is only temporary.
Importance of Keeping Track of Investments
*The recording of investments aids in obtaining awareness of cash inflows from investments.
*Accurate documentation also aids in precisely calculating the fair value of investments.
*Easier to review your investment portfolio when all the documents are in one location.
*Calculating the taxation of various sources of income becomes relatively simple.
*Many of the documents that make up the financial plan will have long-term economic consequences. You don’t want to experience delays or financial losses as a result of inadequate record keeping. As a result, careful record-keeping and transaction documentation are essential.
*It will also assist you in constructing a sustainable portfolio and understanding the related market.
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