Fair value O a. is the price that would be received to sell an asset or pay off a liability. O b. does not change from year to year. O c. is readily attainable to assess the goodwill values. O d. is always equal to historical cost. Dividend yield measures the rate of return to stockholders based on O a. retained earnings. Ob. stock dividends. O c. cash dividends. O d. None of these choices are correct. Trading investments are O a. decreased by the reported net income of the investee. O b. reported at fair value. O c. increased by the reported net income of the investee. O d. reported at amortized cost in the balance sheet. Which of the following statements is not typically a reason why a company may purchase another company's stock? O a. Developing or maintaining business relationships Ob. Earning a return on excess cash O c. Gaining control of another company's operations O d. Assisting in increasing the other company's stock price The cumulative effect of other comprehensive income is reported on the balance sheet as O a. retained earnings. O b. cumulative paid-in capital. O c. accumulated other comprehensive income. O d. All of these choices are correct. At the end of the year, Benton Corporation's short-term investment has a fair value of $47,500. Benton bought the investment for $50,000. An adjusting entry at the end of the year would include a O a. debit to Unrealized Loss on Trading Investments of $2,500. O b. debit to Valuation Allowance for Trading Investment of $2,500. O c. credit to Valuation Allowance for Trading Investment of $47,500. O d.credit to Unrealized Gain on Trading Investments of $2,500. All of the following are disadvantages of fair value use except O a. comparability between companies may be impacted by different fair value measurements O b. fair values can only be used on balance sheet accounts. O c. fair values may not be readily obtainable. O d. fair values may cause more fluctuations as changes occur from period to period. Cash is generally invested in long-term investments for all of the following reasons except O a. to earn interest revenue. O b. to reduce costs. O c. for the integration of operations. O d. to finance expansion. Unrealized Gain on Available-for-Sale Securities O a. is not significant enough to be reported. O b. is reported on the balance sheet. O c. is reported on the income statement separately or as a part of Other Income and O d. is reported on the income statement in the operating expenses area, Zoom Shoes Inc. has 115,000 shares of stock outstanding. GAS Running Company owns 35,000 shares of Zoom Shoes Inc. Which of the following is true? O a. GAS Running Company is required to combine the financial statements of Zoom Shoes Inc. and report as a single company. O b. Zoom Shoes Inc. is the parent company. OC. GAS Running Company is required to use the equity method for this investment O d. GAS Running Company is the subsidiary company, "Proceeds" from the sale of bonds represent O a, the amount of the debit to Cash in the journal entry recording the sale. Ob. the face amount of the bond times the quoted sale percentage. c. the amount compared to the book (cost) value of the bonds to determine the gain or loss on the sale. O d. All of these choices are correct