QUESTION 41

The bank collected a note receivable of $1,000. How would this information be included on the bank reconciliation?

		An addition on the bank side
		A deduction on the book side
		An addition on the book side
		A deduction on the bank side

3 points

QUESTION 42

If an investor company buys stocks in another company to hold for investment (representing less than 20% of the investee stock and they do not plan to sell the stocks in the near future, that investment would be classified as a(n):

		trading equity investment.
		available-for-sale debt investment.
		available-for-sale equity investment.
		held-to-maturity debt investment.

3 points

QUESTION 43

Which of the following depreciation methods does NOT use a residual value in the depreciation formula?

		Units-of-production
		Double-declining-balance
		Straight-line
		First-In, First-Out

3 points

QUESTION 44

The mark-to-market method means:

		trading investments are carried at original cost on the balance sheet.
		trading investments are carried at current market value on the balance sheet.
		trading investments are carried as long-term assets on the balance sheet.
		trading investments are carried at discounted values on the balance sheet .

3 points

QUESTION 45

Which of the following requires that financial statements should report the LEAST favorable figures?

		Accounting conservatism
		Materiality concept
		Disclosure principle
		Consistency principle