Practice test Ch 15

Practice test Ch 15 - Practice Test Chapter 15 -Acctg 202...

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Unformatted text preview: Practice Test Chapter 15 -Acctg 202 1. A company paid $37,800 plus a broker's fee of $525 to acquire 8% bonds with a $40,000 maturity value. The company intends to hold the bonds to maturity. The cash proceeds the company will receive when the bonds mature equal: A $43,200. B $37,800. C $38,325. D $40,525. E $40,000. 2. Six months ago, a company purchased an investment in stock for $65,000. This investment is considered available-for-sale. The current market value of the stock is $68,500. The company should record a: A Debit to Investment Revenue for $3,500. B Credit to Unrealized Gain–Equity for $3,500. C Debit to Unrealized Loss–Equity for $3,500. D Credit to Market Adjustment – Available-for-Sale for $3,500. E Credit to Investment Revenue for $3,500. 3. Investments in debt and equity securities that the company actively manages and trades for profit are referred to as short-term investments in: A Realizable securities....
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This note was uploaded on 02/14/2010 for the course ACCT 202 taught by Professor Horton,d during the Spring '09 term at Shoreline.

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Practice test Ch 15 - Practice Test Chapter 15 -Acctg 202...

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