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Quiz 13 _ch14_ answer

Quiz 13 _ch14_ answer - 3 with additional depreciation...

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Quiz 13 (ch 14) Key 1. Changes in fair value of securities are reported in the income statement for which type of securities? 1. Marketable equity securities 2. Available-for-sale securities 3. Trading securities 4. Held-to-maturity securities 2. A debit balance in the account Market Adjustment--Available-for-Sale Securities at the end of a year should be interpreted as 1. the net unrealized holding gain for that year. 2. the net realized holding gain for that year. 3. the net unrealized holding gain to date. 4. the net realized holding gain to date. 3. When an investor uses the equity method to account for investments in common stock, the investment account will be increased 1. when the investor recognizes a proportionate share of the net income of the investee. 2. when a cash dividend is received from the investee.
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Unformatted text preview: 3. with additional depreciation related to the excess of acquisition cost over book value of the investee's depreciable assets at the date of purchase by the investor. 4. when fair value of investments increases. 4. When an investor uses the equity method to account for investments in common stock, cash dividends received by the investor from the investee should be recorded as 1. an increase in the investment account. 2. a deduction from the investment account. 3. dividend revenue. 4. a deduction from the investor's share of the investee's profits. 5. For which type of investments would realized gain on sale of security be recorded in the income statement? 1. Held-to-maturity securities 2. Available-for-sale securities 3. Trading securities 4. All of them...
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