Chapter 17 - Test Bank

Chapter 17 - Test Bank - CHAPTER 17 INVESTMENTS IFRS...

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CHAPTER 17 INVESTMENTS IFRS questions are available at the end of this chapter. TRUE-FALSE —Conceptual Answer No. Description F 1. Examples of debt securities. T 2. Definition of trading securities. F 3. Available-for-sale unrealized gains/losses. F 4. Classifying held-to-maturity securities. T 5. Fair value changes in AFS securities. F 6. Fair Value Adjustment account. T 7. Accounting for trading securities. F 8. Definition of significant influence. T 9. Reporting Unrealized Holding Gain/Loss—Equity account. T 10. Examples of significant influence. F 11. Definition of controlling interest. T 12. Effect of dividends on investment under equity. F 13. Reporting revenue under fair value method. T 14. Definition of controlling interest. F 15. Using fair value option. T 16. Accounting for changes in fair value. F 17. Temporary declines and write downs. T 18. Necessary of reclassification adjustment. F 19. Transfer of held-to-maturity securities. T 20. Transfers from trading to available-for-sale. MULTIPLE CHOICE —Conceptual Answer No. Description c 21. Debt securities. b 22. Valuation of debt securities. c 23. Held-to-maturity securities. c 24. Unrealized gain/loss recognition for securities. a P 25. Accounting for accrued interest. a S 26. Identifying securities accounted for at amortized cost. c S 27. Accounting for available-for-sale securities. b S 28. Using effective-interest method of amortization. a S 29. Identifying available-for-sale securities. d 30. Classification as held-to-maturity. b 31. Reporting held-to-maturity securities. c 32. Acquisition of held-to-maturity securities. d 33. Accounting for trading securities. c 34. Accounting for trading debt securities. c 35. Recording investments in debt securities. d 36. Calculating the issue price of bonds. c 37. Valuation of investments in debt securities. a 38. Recording amortization of bond discount. c 39. Amortization of premium/discount on investment in a debt security.
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Test Bank for Intermediate Accounting, Fourteenth Edition 17 - 2 MULTIPLE CHOICE —Conceptual (cont.) Answer No. Description d 40. Effective-interest rate method. c 41. Debt securities purchased between interest dates. c 42. Sale of debt security prior to maturity. b S 43. Passive interest investment. a S 44. Fair value vs. equity method. c P 45. Fair value vs. equity method. b 46. Conditions for using the equity method. d 47. Ownership interest required for using the equity method. a 48. Recording of dividends received under the equity method. d 49. Recognition of earnings of investee using the equity method. d 50. Effect of using the fair value method in error. d 51. Determine value of investment. a 52. Fair value option. d 53. Accounting for impairments. c 54. Reclassification adjustment in comprehensive income. b 55. Reclassification of securities. b 56. Reclassification of securities. d P 57. Transfer of a debt security.
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Chapter 17 - Test Bank - CHAPTER 17 INVESTMENTS IFRS...

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