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What's the difference between a finance major and an accounting major?

Whats the difference in accounting between securities and receivables?

  • whats the difference in accounting between securities and receivables? also Why can the cost of a debt security be different from the cash paid to acquire it?

  • Answer:

    Securities (or stock of a company) represents ownership of the company and is carried on the books as a liability. Receivables on the other hand are an asset of a company and represent future cash flow. A debt security or a bond is a liability and is issued to investors in exchange for cash and does not dilute the ownership in the company, unlike the issuance of new stock for money would.

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