Solution :-
14) Option C - Municipal Bonds
15)Option D - Both A and B
16)Option D - All of these are required
17)Option A - Reason for the bill and hold arrangement must be substantive
48)Option C - gains and losses resulting from hedge transactions are reported in different ways depending upon the type of hedge.
14. An example of securities which could be classified as held-to-maturity are A) preferred stock B)...
Which of the following statement(s) is (are) true about reporting held to maturity securities? I. Investments in debt securities that are classified as held to maturity are reported at amortized cost. II. Interest revenue on debt securities that are classified as held to maturity are recognized as other comprehensive income. III. The market value of investments in debt securities that are classified as held to maturity must be disclosed. a. I and II b. I and III c. I, II,...
Intermediate Accounting Bus 203 INVESTMENTS REVIEW 1. Which of the following gains and losses on Held-to-maturity (debt) securities should be included in income? a) Only unrealized gains and realized losses. b) All unrealized losses and unrealized gains. c) Only realized gains and realized losses. d) All gains and unrealized losses. 2. What would be the accounting treatment for a company's Investment in Stock portfolio if on December 31, 2019. the cost of the portfolio was $500,000 and the market value...
7 Which type of warrants require an allocation of the issuance proceeds between the bonds and the warrants under US GAAP A) Non detachable B) Detachable C) Both of the above D) Neither of the above 8. The intrinsic value of a stock option is the difference between the market price of the stock and the exercise price of the options A) True B) False 9. The conversion of bonds is recorded by using the A) incremental method. B) proportional...
Chapter 1 Intercorporate Investments: An Overview Held-to-maturity securities are recorded at amortized cost which approximates fair market value. The Company evaluates whether the decline in fair value of its investments is other-than-temporary at each quarter-end. This evaluation consists of a review by management, and includes market pri information and maturity dates for the securities held, market and economic trends in the industry and information on the issuer's financial condition and, if applicable, information on the guarantors financial condition. Factors considered...
35 Held-to-Maturity securities are reported at their fair market value on the balance sheet date b. include both stocks and bonds c. are primarily purchased to earn interest revenue d. all of the above a.
8. GAAP requires held-to-maturity investments to be reported at their A Historical cost. C. Net realizable value. B. Fair value. D. Amortized cost. 9. Growth firms generally pay regular dividends to stockholders. A True. B. False. 10. In order to maintain a record of the original cost of a trading security, the finir value adjustments are debited or credited to the account Valuation Allowance for Investment A True. B. False. 11. The statement of cash flows is not one of...
8. GAAP requires held-to-maturity investments to be reported at their A. Historical cost. C. Net realizable value. B. Fair value. D. Amortized cost. 9. Growth firms generally pay regular dividends to stockholders. A True. B. False. 10. In order to maintain a record of the original cost of a trading security, the fair value adjustments are debited or credited to the account Valuation Allowance for Investment. A True B. False. 11. The statement of cash flows is not one of...
2. In 2014, Dallas Company had sales of $600,000; cost of sales of $430,000; interest expense of $12,000; and a gain on the sale of a component of $52,000; For its income statement, Dallas uses the single-step format and the all-inclusive concept. What was Dallas's reported pretax income from continuing operations? a. $150,000 b. $158,000 c. $118,000 d. $170,000 2. Â Which of the following is included in comprehensive income? a. gains and losses associated with derivative financial instruments that...
Exercise 12-14 (Algo) Various investment securities (LO12-2, 12-3, 12-4) At December 31, 2021, Hull-Meyers Corp. had the following investments that were purchased during 2021, its first year of operations: Amortized cost Fair Value $ 920,000 125,000 $1,045,000 $ 932,000 119,600 $1,051,600 Trading Securities: Security A Security B Totals Securities Available-for-Sale: Security C Security D Totals Securities to Be Held-to-Maturity: Security E Security F Totals $ 720,000 920,000 $1,640,000 $ 798,000 935,800 $1,733,800 $ 510,000 635,000 $1,145,000 $ 520,500 629,600 $1,150,100...
8. Which of the following statements is true? a. Preferred stock has a stated maturity date. b. The company repays the par value for preferred stock at maturity, like bonds. c. A company bases a preferred stock's cash dividend due each year on the stated dividend rate times the stock's market value. d. Some preferred stocks are cumulative in dividends, meaning that if a company skips a cash dividend, it must pay it at some point in the future.