34.In accounting for investments in debt securities that are classified as trading securities,
a.a discount is reported separately.b.a premium is reported separately.c.any discount or premium is not amortized.d.none of these.
35.Investments in debt securities are generally recorded at
36.Jordan Co. purchased ten-year, 10% bonds that pay interest semiannually. The bonds aresold to yield 8%. One step in calculating the issue price of the bonds is to multiply theprincipal by the table value for
37.Investments in debt securities should be recorded on the date of acquisition at
17 - 9
Test Bank for Intermediate Accounting, Fourteenth Edition
38.An available-for-sale debt security is purchased at a discount. The entry to record theamortization of the discount includes a
a.debit to Available-for-Sale Securities.b.debit to the discount account.c.debit to Interest Revenue.d.none of these.
39.APB Opinion No. 21specifies that, regarding the amortization of a premium or discount ona debt security, the
40.Which of the following is correct about the effective-interest method of amortization?
