A company accounts for it's equity investment using the FV-OCI. The investment was sold. Accumulated other comprehensive income (AOCI) has a credit balance of $1,200. An appropriate entry would be:

Question 7 options:

	Dr: AOCI $1,200 Cr: Retained Earnings $1,200
	Dr: AOCI $1,200 Cr: Interest Expense $1,200
	Dr: Retained Earnings $1,200 Cr: AOCI $1,200
	Dr: AOCI $1,200 Cr: Investment Income $1,200

When the cost model is applied to an investment in debt securities, such as bonds, it is referred to as the

Question 8 options:

	a) equity method.
	b) fair value through net income model.
	c) fair value through other comprehensive income model.
	d) amortized cost model

A company accounts for it's investments using FV-OCI. When the investment is sold and accumulated other comprehensive income is cleared; which type of investment would flow through net income?

Question 10 options:

	Bonds
	Preferred Shares
	Common Shares
	None of the above

In 2018, beginning inventory was overstated by $10,000. What is the impact to the December 31, 2018 financial statements?

Question 11 options:

	a) no impact
	b) net income is overstated by $10,000
	c) net income is understated by $10,000
	d) accounts payable is understated by $10,000

A manufacturing company typically maintains the following inventory account(s):

Question 12 options:

	a) Merchandise Inventory.
	b) Raw Materials and Work in Process only.
	c) Raw Materials, Work in Process and Finished Goods Inventory.
	d) Work in Process and Merchandise Inventory only.