Questions 13 use the following data: Assume that Fast Networks owns the following long-term available-for-sale investments: 1.

Question:

Questions 1€“3 use the following data:
Assume that Fast Networks owns the following long-term available-for-sale investments:

1. Fast€™s balance sheet should report
a. investments of $65,100.
b. unrealized loss of $13,600.
c. investments of $51,500.
d. dividend revenue of $1,980.

2. Fast€™s income statement should report
a. unrealized loss of $13,600.
b. dividend revenue of $1,980.
c. gain on sale of investment of $13,600.
d. investments of $51,500.

3. Suppose that, before year-end, Fast sells the Hurlburt stock for $69 per share. Journalize the sale.

4. Dividends received on an equity-method investment
a. decrease the investment account.
b. increase owners€™ equity.
c. increase the investment account.
d. increase dividend revenue.

5. The starting point in accounting for all investments is
a. equity value.
b. cost minus dividends.
c. cost.
d. market value on the balance-sheet date.

6. Consolidation accounting
a. reports the receivables and payables of the parent company only.
b. eliminates all liabilities.
c. combines the accounts of the parent company and those of the subsidiary companies.
d. all of theabove.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...