If the initial purchase of bonds was completed between interest dates, the journal entry for the receipt of the first interest payment will include a a.credit to Interest Receivable. b.credit to Interest Payable. c.debit to Interest Receivable. d.debit to Interest Revenue.

On January 1, Black Company's valuation allowance for Trading investment account had a credit balance of $22,500. On December 31, the cost of the trading securities portfolio is $100,000. The fair value is $80,000. Which of the following would Black report?

a.Unrealized Gain on Trading Investments of $2,500

b.Unrealized Loss on Trading Investments of $2,500

c.Unrealized Loss on Trading Investments of $20,000

d.Unrealized Gain on Trading Investments of $20,000

emporary investments in debt and equity securities are reported in the __________ section of the balance sheet.

a.Long-term Assets

b.Current Assets

c.Current Liabilities

d.Other Revenue

Dividends of $2.40 per share were paid during the year. Earnings per share are $4.60. The stock has a current market value of $40. What is the dividend yield?

a.6.0%

b.16.7%

c.8.7%

d.11.5%

Unrealized Gain on Trading Investments

a.is reported on the income statement in the operating expenses area.

b.is reported on the balance sheet.

c.is not significant enough to be reported.

d.is reported on the income statement separately or as a part of Other Income and Expense.