quizs - Question 1 of 10 0.0/ 1.0 Points A loss on a...

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Question 1 of 10 0.0/ 1.0 Points A loss on a company's temporary investments from the application of fair value reporting should be reflected in the current financial statements as A. a note or parenthetical disclosure only. B. a current loss resulting from holding securities. C. an extraordinary item shown as a direct reduction from retained earnings. D. other comprehensive income and deducted in the equity section of the balance sheet. Answer Key: B Question 2 of 10 1.0/ 1.0 Points When an investment changes its classification from available-for-sale to held-to-maturity the transfer takes place at: A. Historical cost B. Equity C. Book value value D. Market value which becomes the new cost Answer Key: D Question 3 of 10 1.0/ 1.0 Points On August 1, 2006, Camby Company acquired $60,000 face value 10% bonds of Hanson Corporation at 104 plus accrued interest. The bonds were dated May 1, 2006, and mature on April 30, 2011, with interest payable each October 31 and April 30. The bonds will be held to maturity. What entry should Camby make to record the purchase of the bonds on August 1, 2006? A. Dr. Investment in Bonds 62,400 Dr. Interest Revenue 1,500 Cr. Cash 63,900
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