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