Exam 12: Reporting and Analyzing Investments

Debt investments include all of the following except

No unrealized gains and losses are recorded when using the amortized cost model.

Realized and unrealized gains and losses are reported in the investing activities of the statement of cash flows.

The equity method should generally be used to account for an investment in shares when the level of ownership is

Which of the following would never be classified as a long-term investment?

On October 1 of last year, Canadian Trader Corp (CTC) purchased 1,000 shares of the Regal Bank for $50,000 as a trading investment. At year end, December 31, the fair value of these shares was $52,000. On February 1 of this year, CTC sold all these shares for $51,000. The realized gain (loss) that CTC will report this year is

When investing excess cash for short periods of time, corporations generally invest in equity securities.

When investing excess cash for short periods of time, corporations generally invest in any of the following, except

Which of the following would not be reported under "Other Revenues or Gains" on the income statement?

When an investee can be significantly influenced, it is known as a(n)

All of the following investments are generally shown at their fair value except

On January 1, 2013, Cornwall Corp purchased 25% of the common shares of London Corp for $400,000. During 2013, London Corp reported profits of $60,000 and paid total cash dividends of $12,000. The balance in the Investment in Associates (London) account on Cornwall's books at December 31, 2013 is

Non-strategic investments that are held for the purpose of earning capital gains are called trading investments.

If there is a bond premium on a long-term bond investment, the carrying amount of the investment is reduced by the amount of the amortization.

Other comprehensive income (loss) increases (decreases) accumulated other comprehensive income.

Unless there is evidence to the contrary, an investor owning at least 20% of the shares of an investee is assumed to have significant influence.

Corporations invest in other companies for all of the following reasons except to

Financial assets have all of the following characteristics except

Under the equity method of accounting for an investment

The amortization of a bond investment is recorded in an Interest Expense account.