This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: CHAPTER 17 INVESTMENTS MULTIPLE CHOICE Conceptual Answer No. Description c 1. Debt securities. b 2. Valuation of debt securities. c 3. Held-to-maturity securities. d 4. Classification as held-to-maturity. b 5. Reporting held-to-maturity securities. c 6. Acquisition of held-to-maturity securities. d 7. Accounting for trading securities. c 8. Unrealized gain/loss recognition for securities. d 9 Classification of unrealized loss on available-for-sale securities. d 10. Classification of unrealized gain on available-for-sale securities. b 11. Reclassification of securities. b 12. Reclassification of securities. c 13. Accounting for trading debt securities. c 14. Recording investments in debt securities. d 15. Calculating the issue price of bonds. c 16. Valuation of investments in debt securities. a 17. Recording amortization of bond discount. c 18. Amortization of premium/discount on investment in a debt security. d 19. Effective interest rate method. c 20. Debt securities purchased between interest dates. c 21. Sale of debt security prior to maturity. b 22. Conditions for using the equity method. c 23. Reclassification adjustment in comprehensive income. d 24. Ownership interest required for using the equity method. a 25. Recording of dividends received under the equity method. d 26. Recognition of earnings of investee using the equity method. d 27. Effect of using the fair value method in error. c *28. Accounting for derivatives. b *29. Characteristics of a derivative instrument. a *30. Identifying companies that are arbitrageurs. c *31. Accounting for fair value hedges. b *32. Gains/losses on cash flow hedges. a *33. Identifying an embedded derivative. c *34. Requirements for financial instrument disclosures. *This topic is dealt with in an Appendix to the chapter. Test Bank for Intermediate Accounting, Eleventh Edition MULTIPLE CHOICE Computational Answer No. Description c 35. Fair value for trading securities. a 36. Unrealized gain on available-for-sale securities. a 37. Acquisition of held-to-maturity securities. c 38. Recording the purchase of debt securities. b 39. Carrying value of held-to-maturity securities. c 40. Carrying value of available-for-sale debt securities. a 41. Calculation of income from available-for-sale debt securities. b 42. Calculation of income from HTM securities. b 43. Determine gain on sale of debt securities. c 44. Accounting for stock investments/fair value method. b 45. Accounting for stock investments/equity method. b 46. Accounting for stock investments/fair value method. b 47. Equity method of accounting. c 48. Fair value method of accounting for stock investment. c 49. Equity method of accounting for stock investment....
View Full Document
This note was uploaded on 05/01/2011 for the course ACCT 3341 taught by Professor Dr.ramaswamy during the Spring '09 term at University of St. Thomas-Texas.
- Spring '09