Thepurposeofowningtradingsecuritiesisto:
A. increasecashreserves
B. holdtheinvestmentforatleastoneyear
C. selltheinvestmentformorethanitscost
D. selltheinvestmenttodecreasenetincome
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Applecompanypurchasestradingsecurityfor$12,000.Theentrytorecordthistransactionwillincludea:
A. credittotheinvestmentaccount
B. debittotheinvestmentaccount
C. credittothedividendrevenueaccount
D. debittotheunrealizedgainaccount
Whenacompanyreceivesacashdividendonatradingsecurity:
A. revenueisdecreased
B. assetsaredecreased
C. revenueisincreased
D. liabilitiesaredecreased
Whichaccountshowstheamountofaccountsreceivablethatthebusinessdoesnotexpecttocollect?
A. uncollectibleaccountsexpense
B. allowanceforuncollectibleaccounts
C. salesreturnandallowance
D. unearnedaccountsreceivable
Whichmethoddoesnotuseestimates?
A. direct-writeoffmethod
B. percent–of-sales
C. aging-ofreceivablesmethod
D. allowancemethod
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