1) Held to maturity securities

A. Are reported at fair market value

B. Include stocks as well as bonds

C. May be reported as current or noncurrent assets

D. All of the above

2) Which of the following is an example of direct materials cost for an automobile manufacturer?

A. Cost of wages of assembly worker

B. Cost of oil lubricants for factory machinery

C. Cost of interior upholstery

D. Salary of production supervisor

3) The task of preparing a budget should be the sole task of the most important department in an organization.

A. True

B. False

4) Managerial accounting information includes both historical and estimated data.

A. True

B. False

5) The amortization of discounts or premiums are recorded as part of interest income on the income statement.

A. True

B. False

6) Which of the following is not a reason to invest excess cash in temporary investments?

A. Earn interest revenue

B. Realize gains from the increase in market value of the securities

C. Receive dividends

D. Influence the operations of another company