超星 - Assignment 8

单选题

When an investment is readily convertible to cash and the investor plans to convert the investment to cash within one year, the investment is reported on the balance sheet as:

A.a current asset.
B.a long-term asset.
C.stockholders' equity.
D.a cash equivalent.

单选题

Unrealized gains and losses from long-term available-for-sale investments arise from:

A.the purchase of an investment.
B.the sale of the investment.
C.changes in the fair value of the investment.
D.investor's share of investee's net income or net loss.

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单选题

Long-term investments include:

A.stocks and bonds.
B.securities that the investor expects to hold longer than one year.
C.securities reported in the noncurrent asset section of the balance sheet.
D.all of the above.

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单选题

An investor purchased bonds and intends to hold them until the maturity date which is 10 years into the future. The bonds were purchased at a discount. One year after purchase, this Held-to-Maturity Investment in Bonds will be reported at ________ on the balance sheet.

A.fair value
B.historical cost
C.lower of cost or market
D.amortized cost

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单选题

On January 1, 2015, Benson Company purchases $100,000, 6% bonds at a price of 95 and a maturity date of January 1, 2020. Benson Company plans to hold the bonds until their maturity date. Interest is paid semiannually, on January 1 and July 1. Benson Company has a calendar year end. The adjusting entry on December 31, 2015 is:

A.debit Cash $3,000 and credit Interest Revenue $3,000.
B.debit Cash $6,000 and credit Interest Revenue $6,000.
C.debit to Interest Receivable $3,000, debit Held-to-Maturity Investment in Bonds for $500 and credit Interest Revenue $3,500.
D.debit to Interest Receivable $6,000 and credit Interest Revenue $6,000.

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单选题

On January 1, 2015, Carmody Corporation purchased 5% bonds with a face value of $40,000 for $42,000. Carmody Corporation intends to hold the bonds until the maturity date. Interest is paid semiannually on January 1 and July 1. The journal entry on January 1, 2015 is:

A.debit Held-to-Maturity Investment in Bonds for $40,000, debit Premium on Bonds for $2,000 and credit Cash for $42,000.
B.debit Held-to-Maturity Investment in Bonds for $42,000 and credit Cash for $42,000.
C.debit Investment in Bonds for $42,000 and credit Interest Revenue for $42,000.
D.debit Investment in Bonds for $40,000, debit Premium on Bonds for $2,000 and credit Interest Revenue $42,000.

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单选题

If an investor owns less than 20% of the common stock of another company as a long-term investment:

A.the equity method of accounting should be used for the investment.
B.the investor has a controlling interest in the investee.
C.the investor usually has little or no influence on the investee.
D.the investor has significant influence on the investee.

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单选题

For accounting purposes, the method used to account for long-term investments in common stock is determined by:

A.the size of the investor.
B.the size of the investor when compared to the size of the investee.
C.vote by the Board of Directors of the investor.
D.the investor's percentage ownership of the investee's stock.

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单选题

An investor receives a cash dividend from a long-term available-for-sale investment. Which journal entry is required?

A.a debit to Cash and a credit to Dividend Revenue
B.a debit to Cash and a credit to Interest Revenue
C.a debit to Cash and credit to Investment in Available-for-Sale Securities
D.a debit to Cash and credit to Interest Receivable

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单选题

A long-term investment in available-for-sale securities was acquired at a cost of $40,000. At year-end, the fair value of the securities is $42,250. The year-end adjusting entry requires a:

A.credit Investment in Available-for-Sale Securities for $2,250.
B.debit Allowance to Adjust Investment in Available-for-Sale Securities to Market for $2,250.
C.credit Allowance to Adjust Investment in Available-for-Sale Securities to Market for $2,250.
D.debit Unrealized Loss on Investment in Available-for-Sale Securities for $2,250.

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