1. While preparing a common size income statement, we always: a. Multiply all items on income statement by total revenue. b. Divide all items on income statement by total revenue. c. Calculate income and expense ratio

d. None of above

2. Passive investments in debt securities held to maturity by a company are reported at:

a. Fair value

b. Historical cost

c. Amortized cost

d. None of above

3. If Investment in equity securities is between 20% to 50% then their valuation is made by using:

a. Fair value

b. Historical cost

c. Equity method

d. Amortized cost

4. Salva Company purchased a computer for $13,000 on 01 January 2015. The company

intends to depreciate it over 4 years using the double-declining balance method. Salvage value is estimated $0. Depreciation for the year ended on 31 December 2015 is:

a. $6500 b. $3250 c. $4875 d. $3000

5. Which of the following item is not considered while calculating comprehensive income?

a. Unrealized holding gains (loss) on marketable securities

b. Foreign currency translation adjustment

c. Premium on issuance of preferred stock

d. Unrealized holding gains or loss on derivative instruments