Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which of the following is true of debt securities? A. Debt securities represent ownership interests of the investors. B. Debt securities typically pay interest for

image text in transcribed

Which of the following is true of debt securities? A. Debt securities represent ownership interests of the investors. B. Debt securities typically pay interest for a fixed period. C. Debt securities entitle the holder to receipt of a share of profit in the form of dividends. D. Debt securities include preferred stocks. Which of the following securities pay dividends? A. Treasury bills B. debt sec unties C. corporate bonds D. common stocks Which one of the following is an example of investment income from securities? A. depreciation of long-term assets B. deferred tax assets C. gain on the sale of fixed assets D. interest earned from debt securities Which of the following will be classified as a held-to-maturity investment? A. bond B. machinery C. equity investment D. land Available-for-sale (AFS) investments are reported as if the business expects to sell them within one year. A. equity B. long-term assets C. current assets D. either current assets or long-term assets Beige Corporation pays $500,000 to acquire 40% of the equity securities of Olive Technologies, Inc. On May 5, 2017. This investment will be classified as a(n). A. larding investment B. available-for-sale C. significant interest investment D. held-to-maturity Accruex Corporation invests excess cash of $25.000 in corporate bonds on March 30, 2017. The bonds will mature in two years from the date of purchase. When the bonds mature in 2019, Accruex plans to use the cash for its business expansion. Which of the following is included in the journal entry on March 30,2017? A. a debit to Long-term Investmentslong dash-Available-for-Sale for $25,000 B. a debit to Short-term Investmentslong dash-U.S. Treasury Notes for $25,000 C. a credit to Long-term Investmentslong dash-Available-for-Sale for $25,000 D. a debit to Long-term Investmentslong dash-Held-to-Maturity for $25,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions