7. Equity securities acquired by a corporation which are accounted for by recognizing unrealized holding gains or losses are

a. securities where a company has holdings of less than 20%.

b. securities where a company has holdings of more than 20%.

c securities where a company has holdings of between 20% and 50%.

d. securities where a company has holdings of more than 50%.

8. A requirement for a security to be classified as held-to-maturity is

a. ability to hold the security to maturity.

b. positive intent.

c. the security must be a debt security.

d. All of these are required.

9. Held-to-maturity securities are reported at

a. acquisition cost.

b. acquisition cost plus amortization of a discount.

c. acquisition cost plus interest.

d. fair value.

10. In accounting for investments in debt securities,

a. a discount is reported separately.

b. a premium is reported separately.

c. any discount or premium is amortized.

d. None of these answers are correct.

11. An available-for-sale debt security is purchased at a discount. The entry to record the amortization of the discount includes a

a. debit to Debt Investments.

b. debit to the discount account.

c. debit to Interest Revenue.

d. None of these answers are correct.