第八章测试1.
The Ashley Corporation purchased $600,000 of 4%, 5-year bonds at 97 on January 1, 2014. Interest is to be paid semiannually on January 1 and July 1. This is a held-to-maturity investment. This company uses the straight-line method to amortize any premiums or discounts. What was the purchase price of these bonds?( )A.$600,000
A: $540,000 B:$618,000 C: $600,000 D:$582,000
答案:D
2.Refer to Question 1. What is the amount of Interest Revenue recorded on July 1, 2014?( )
A:$10,200
B:$12,000
C:$13,800
D:$24,000
3.Refer to Question 1. What is the carrying amount of the bond on July 1, 2014?( )
A:$583,800
B:$600,000
C:$580,200
D:$582,000
4.
Which statement regarding “available-for-sale investments” is true? ( )
A:Both Available for sale investments generally comprise up to 20%, but not including 20%, ownership and If the business plans to sell the investments within a year, they are classified as long-term investments are true.
B:Available for sale investments generally comprise up to 20%, but not including 20%, ownership.
C:Both Available for sale investments generally comprise up to 20%, but not including 20%, ownership and If the business plans to sell the investments within a year, they are classified as long-term investments are not true. D:If the business plans to sell the investments within a year, they are classified as long-term investments.
5.
When an available for sale investment is sold:( )
A:other three choices occur.
B:a realized gain or loss cannot be recorded.
C:the amount of the realized gain or loss is the difference between the amount received and the cost of the investment.
D:a realized gain or loss is reported as an expense on the Income Statement.
6.
Which of the following is true regarding equity-method investments?( )
A:The account Equity-method Investment is decreased for the receipt of a dividend on an equity-method investment.
B:That gain or loss on the sale of an equity-method investment is the difference between the sale proceeds and the carrying amount of the investment is true and that the account Equity-method Investment is decreased for the receipt of a dividend on an equity-method investment is true.
C:Gain or loss on the sale of an equity-method investment is the difference between the sale proceeds and the carrying amount of the investment.
D:That gain or loss on the sale of an equity-method investment is the difference between the sale proceeds and the carrying amount of the investment is not true and that the account Equity-method Investment is decreased for the receipt of a dividend on an equity-method investment is not true. 7.Under the equity method, when an investor company records its share of investee income,( )
A:the investor company will debit Cash for their share of the income.
B:the entry to record the revenue is:
Equity-Method Investment Revenue XX
Equity-Method Investment XX"
C:"the following entry is used to record the revenue:
Equity-Method Investment XX
Equity-Method Investment Revenue XX"
D:a memo entry is used to record the revenue.
8.
Which of the following is/are eliminated in the preparation of a consolidated balance sheet?( )
A:Investment account
B:Stockholders’ equity of the subsidiary
C:Intercompany receivables and payables
D:select other three choices all 9.On the purchase date, long-term available-for-sale equity securities are reported on the balance sheet at:( )
A:amortized cost
B:fair value
C:cost
D:the lower-of-cost-or-market.
10.
The Unrealized Gain on Investment in Available-for-Sale Securities is reported in:( )
A:Other Comprehensive Income on the Statement of Comprehensive Income
B:Other Revenues and Gains on the income statement.
C:Accumulated Other Comprehensive Income on the balance sheet
D:Other Comprehensive Income on the Statement of Comprehensive Income and Accumulated Other Comprehensive Income on the balance sheet