Chrome We SO Os Translate News Click to watch the Tell Me More Learning Objective 1 video and then answer the questions below. 1. Which of the following is not a primary objective of investing in temporary investments? a. Earn interest revenue b. Pay dividends c. Realize gains from increases in the market price of the securities d. Receive dividends 2. Debt securities are a. notes and bonds that pay interest and have a fixed maturity date. b. preferred and common stock that represent ownership in a company and do not have a fixed maturity date. c.notes and bonds that pay interest and do not have a fixed maturity date. d. preferred and common stocks that represent ownership in a company and have a fixed maturity date. LE Chrome Web Store Chek to watch the Tell Me Morean Odive video and then wer the questions below 1. The company investing in another company's stock is called alo) a. broker b. Investor Cvetne d.stockee. 2. Assume that Florence Company purchases 10% of the outstanding stock at Holt Corporation, which accounting method will be used? Equity method b. Fair value method Consolidation d. None of these choices are correct 3. Royce Company potched 25% interest in Bell Corporations common stock on January 10. Atyre end, Bel Corporation reported net income of $250,000. under the equity method, Royce Company's journal entry to record its share of Belt Corporation's net income would include a to debt; investment in Bell Corporation Stock for $62,500 b. credit: Investment in Bel Corporation Stock for $62,500 cdebitcome of Bell Corporation for $250,000 d. credit Income of Bell Corporation for $250,000 Check My Work Previous Next over the investe 4. If the investor purchases more than 50% of the outstanding stock of the investee, the investor is considered to have influence b. significant influence control d. power 5. Heller Company porchased 1,000 shares of Carpenter Corporation's common stock with a cost of $10,000 on January 1, on May 15, Heller sold 500 shares of Carpenter Corporation's common stock. Thet for market value of the investment on December 31 57,000. Calculate the unrecognized gain or loss for the period. a $500 g B. $2,000 loss c. 2.500 loss $9.000 gain Previous Check My Work All Wed ins Send Submit Aasime Click to watch the Tell Me More Leng Objective video and the answer the questions below 1. The journal entry to record the purchase of $20,000 of beds at the face amount on May 17 pued interest for a wouwde I debet Cash crvestments 2. Cum endndon December 31. The moontlindjusting entry to score interest for $20,000, 4 hende, purchased on October 1, would be $200.00 c.800.00 d. 2.000.00 3. The value method of reporting debitment does try at the end of the period to record the chance for value Il revent the end of the period or the adjusting entry for investments c.requery the end of the period to the change in value of the invest d. record the oldest and the receipt of interest in a manner to the method Previous Net) Cud My Work Emeler Save and Sigment for Grad All work saved Click to watch the Tell Me More Learning Objective 4 video and then answer the questions below. 1. Trading securities are classified on the balance sheet as a. a noncurrent asset. b. a current asset. c. either a current or noncurrent asset, depending on management's intent. d. either a current or noncurrent asset, depending on their remaining term to maturity, 2. Changes in valuation for available for sale securities are reported a. as unrealized gains or losses on the income statement as other revenue (loss) b. as accumulated unrealized gains or losses in the stockholders' equity section on the balance sheet. c. as an amortized cost of the investment on the balance sheet d. at cost. 3. Held-to-maturity securities are primarily purchased 2. to earn short-term profits. b. for tax benefits c. to earn interest revenue. d. to receive dividends
