Question#1

Short-term investments in held-to-maturity debt securities are accounted for using the:

	1-	1-Cost method with amortization.
	2-	2-Fair value method with fair value adjustment to equity.
	3-	3-Equity method.
		4-Cost method without amortization.
		5-Fair value method with fair value adjustment to income.

Question#2

A bond is issued at par value when:

		1-The bond is callable.
		2-Straight line amortization is used by the company.
		3-The bond is not between interest payment dates.
		4-The market rate of interest is the same as the contract rate of interest.
		5-The bond pays no interest.