exam 2 questions and notes

exam 2 questions and notes - -wehther mgmt wants to mark...

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Dont worry about transfers b/t security classes for 470 Wont have to do a consolidation on the test problem Know how to come up with a goodwill number (consolidation illustration slide) 1. trading marketable securities -are considered non current assets -are recorded at amortized cost -are marked to the lower fo cost or market each accoutning period - are marked to market each acct period 2. the classficiation of marketable equity securities as trading or available for sale is determined by - managements intent regarding the disposition of the securities -when securities mature -whether the current assets are greater or less tahn the current Liabilities
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Unformatted text preview: -wehther mgmt wants to mark them to market or not 3. the equity method of acct for investments requires:-investment should be marked to market each acct period-pro-rata share of investees earnings should be recorded as investment income-company should not have significant influence over investee-goodwill related to purchase of investee stock to be recorded separately on balance sheet T/F 4. not equity securities 5. A and L are brought over at the current exchange rate as of the balance sheet date...
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