Question 1

If a U.S.company makes a credit sale to a foreign company,the sales price must be translated into dollars as of the date of _____________.

Accepted Answer

The answer of If a U.S.company makes a credit sale...

Question 2

On September 13,2013,MTA Corp.acquired 50 shares of Vista,Inc.for $100 per share as a long-term available-for-sale security.At December 31,2013,the Vista shares had a fair value of $105 per share and MTA recorded the required adjusting entry to record the fair value of the Vista investment.At December 31,2104,the Vista shares had a fair value of $102 per share.How would the company record the adjustment to fair value?

Accepted Answer

A) Debit Fair Value Adjustment-Available-for-Sale (LT) for $250 and credit Unrealized Gain-Equity for $250. 
B) Debit Fair Value Adjustment-Available-for-Sale (LT) for $100 and credit Unrealized Gain-Equity for $100. 
C) Debit Unrealized Gain-Equity for $300 and credit Fair Value Adjustment-Available-for-Sale (LT) for $300. 
D) Debit Unrealized Gain-Income for $150 and credit Fair Value Adjustment-Available-for-Sale (LT) for $150. 
E) Debit Unrealized Gain-Equity for $150 and credit Fair Value Adjustment-Available-for-Sale (LT) for $150. 
A) Debit Fair Value Adjustment-Available-for-Sale (LT) for $250 and credit Unrealized Gain-Equity for $250. 
B) Debit Fair Value Adjustment-Available-for-Sale (LT) for $100 and credit Unrealized Gain-Equity for $100. 
C) Debit Unrealized Gain-Equity for $300 and credit Fair Value Adjustment-Available-for-Sale (LT) for $300. 
D) Debit Unrealized Gain-Income for $150 and credit Fair Value Adjustment-Available-for-Sale (LT) for $150. 
E) Debit Unrealized Gain-Equity for $150 and credit Fair Value Adjustment-Available-for-Sale (LT) for $150.

Question 3

What are the accounting basics for debt securities,including recording their acquisition,interest earned and their disposal?

Accepted Answer

At acquisition,debt securities are recor

Question 4

Held-to-maturity securities are ____________ securities a company intends and is able to hold until maturity.

Accepted Answer

The answer of Held-to-maturity securities are ____________ securities a company...

Question 5

Mian,Inc.,sells American gourmet foods to merchandisers in Singapore.Prepare the journal entries for Mian to record the following transactions.Include any year-end adjustments.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 6

If a company owns more than 20% of the stock of another company and the stock is being held as a long-term investment,which method would the investor normally use to account for this investment?

Accepted Answer

A) Equity method 
B) Market value method 
C) Historical cost method 
D) Straight-line method 
E) Effective method 
A) Equity method 
B) Market value method 
C) Historical cost method 
D) Straight-line method 
E) Effective method

Question 7

Define the return on total assets and explain how it is used to measure a company's financial performance.

Accepted Answer

The return on total assets is calculated

Question 8

Investments in trading securities are always classified as ______________ and are reported as _______________ on the balance sheet.

Accepted Answer

short-term

Question 9

An investing company that owns _________ of another (investee) company's voting stock (but not more than 50%) is presumed to have a significant influence over the investee.

Accepted Answer

The answer of An investing company that owns _________ of...

Question 10

Cash equivalents are investments that are readily converted to known amounts of cash that mature within three months.

Accepted Answer

A) True 
 B)False

Question 11

At the end of the accounting period,the owners of debt securities:

Accepted Answer

A) Must report the dividend income accrued on the debt securities. 
B) Must retire the debt. 
C) Must record a gain or loss on the interest income earned. 
D) Must record a gain or loss on the dividend income earned. 
E) Must accrue interest earned on the debt securities. 
A) Must report the dividend income accrued on the debt securities. 
B) Must retire the debt. 
C) Must record a gain or loss on the interest income earned. 
D) Must record a gain or loss on the dividend income earned. 
E) Must accrue interest earned on the debt securities.

Question 12

A company received dividends of $0.35 per share on 300 shares of stock.The journal entry to record this transaction would be to debit Cash for $105 and credit Dividend Revenue for $105.

Accepted Answer

A) True 
 B)False

Question 13

All companies desire a low return on total assets.

Accepted Answer

A) True 
 B)False

Question 14

At acquisition,debt securities are:

Accepted Answer

A) Recorded at their cost,plus total interest that will be paid over the life of the security. 
B) Recorded at the amount of interest that will be paid over the life of the security. 
C) Recorded at cost. 
D) Not recorded,because no interest is due yet. 
E) Recorded at the amount of dividend income to be received. 
A) Recorded at their cost,plus total interest that will be paid over the life of the security. 
B) Recorded at the amount of interest that will be paid over the life of the security. 
C) Recorded at cost. 
D) Not recorded,because no interest is due yet. 
E) Recorded at the amount of dividend income to be received.

Question 15

A company has net income of $130,500.Its net sales were $1,740,000 and its total assets were $2,750,000.Its profit margin equals 7.5%.

Accepted Answer

A) True 
 B)False

Question 16

Detalo Co.held bonds of Schooner Corp.with a cost of $125,000 and a market value of $127,000.Detalo also held 1,500 shares of Tranco common stock with a cost of $25,000 and a market value of $24,700.These are classified as long-term available-for-sale securities.Prepare the journal entry to record the market value of the investments as of December 31.

Accepted Answer

@#IMG-DLM&_TB6947_00_TB6947_00

Question 17

Equity securities are:

Accepted Answer

A) Recorded at cost to acquire them plus accrued interest. 
B) Recorded at cost to acquire them plus dividends earned. 
C) Recorded at cost to acquire them. 
D) Not recorded until dividends are received. 
E) Not recorded until interest is received. 
A) Recorded at cost to acquire them plus accrued interest. 
B) Recorded at cost to acquire them plus dividends earned. 
C) Recorded at cost to acquire them. 
D) Not recorded until dividends are received. 
E) Not recorded until interest is received.

Question 18

Foreign exchange rates fluctuate due to changing _______________ and ___________ conditions.

Accepted Answer

The answer of Foreign exchange rates fluctuate due to changing...

Question 19

On September 1,2014,Rode Corp.paid $100,000 plus a brokerage fee in the amount of $500 to buy Liston's 6%,two-year bonds payable with a $100,000 par value.The bonds pay interest semiannually on June 30 and December 31.Rode intends to hold the bonds until they mature on December 31,2016.How would Rode record the adjusting entry relating to these bonds on December 31,2014?

Accepted Answer

A) Debit Interest Receivable for $2,000 and credit Interest Revenue for $2,000. 
B) Debit Interest Receivable for $2,010 and credit Interest Revenue for $2,010. 
C) Debit Interest Receivable for $3,000 and credit Interest Revenue for $3,000. 
D) Debit Interest Receivable for $3,015 and credit Interest Revenue for $3,015. 
E) Debit Interest Receivable for $6,000 and credit Interest Revenue for $6,000. 
A) Debit Interest Receivable for $2,000 and credit Interest Revenue for $2,000. 
B) Debit Interest Receivable for $2,010 and credit Interest Revenue for $2,010. 
C) Debit Interest Receivable for $3,000 and credit Interest Revenue for $3,000. 
D) Debit Interest Receivable for $3,015 and credit Interest Revenue for $3,015. 
E) Debit Interest Receivable for $6,000 and credit Interest Revenue for $6,000.

Question 20

On January 1,2011,Posten Company purchased 10,000 shares of Toma Company for $78,000 plus a broker's fee of $2,000.Toma Company has a total of 40,000 shares of common stock outstanding and it is presumed the Posten Company will have a significant influence over Toma.Toma declared and paid cash dividends of $0.93 per share in 2011 and 2012.Toma's net income was $190,000 and $270,000 for 2011 and 2012 respectively.The January 1,2013,entry on the books of Posten Company to record the sale of 4,500 shares of Toma Company stock for $85,000 cash should be:

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
E) 
  
A) 
  
B) 
  
C) 
  
D) 
  
E)

If a U.S.company makes a credit sale to a foreign company,the sales price must be translated into dollars as of the date of _____________.

What are the accounting basics for debt securities,including recording their acquisition,interest earned and their disposal?

Held-to-maturity securities are ____________ securities a company intends and is able to hold until maturity.

Mian,Inc.,sells American gourmet foods to merchandisers in Singapore.Prepare the journal entries for Mian to record the following transactions.Include any year-end adjustments.

If a company owns more than 20% of the stock of another company and the stock is being held as a long-term investment,which method would the investor normally use to account for this investment?

Define the return on total assets and explain how it is used to measure a company's financial performance.

Investments in trading securities are always classified as and are reported as _ on the balance sheet.

An investing company that owns _________ of another (investee) company's voting stock (but not more than 50%) is presumed to have a significant influence over the investee.

Cash equivalents are investments that are readily converted to known amounts of cash that mature within three months.

At the end of the accounting period,the owners of debt securities:

A company received dividends of $0.35 per share on 300 shares of stock.The journal entry to record this transaction would be to debit Cash for $105 and credit Dividend Revenue for $105.

All companies desire a low return on total assets.

At acquisition,debt securities are:

A company has net income of $130,500.Its net sales were $1,740,000 and its total assets were $2,750,000.Its profit margin equals 7.5%.

Equity securities are:

Foreign exchange rates fluctuate due to changing _____ and _ conditions.

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Accounting for Partnerships

Accounting With Special Journals

Filters

Exam 15: Investments and International Operations

If a U.S.company makes a credit sale to a foreign company,the sales price must be translated into dollars as of the date of _____________.

What are the accounting basics for debt securities,including recording their acquisition,interest earned and their disposal?

Held-to-maturity securities are ____________ securities a company intends and is able to hold until maturity.

Mian,Inc.,sells American gourmet foods to merchandisers in Singapore.Prepare the journal entries for Mian to record the following transactions.Include any year-end adjustments.

If a company owns more than 20% of the stock of another company and the stock is being held as a long-term investment,which method would the investor normally use to account for this investment?

Define the return on total assets and explain how it is used to measure a company's financial performance.

Investments in trading securities are always classified as ______________ and are reported as _______________ on the balance sheet.

An investing company that owns _________ of another (investee) company's voting stock (but not more than 50%) is presumed to have a significant influence over the investee.

Cash equivalents are investments that are readily converted to known amounts of cash that mature within three months.

At the end of the accounting period,the owners of debt securities:

A company received dividends of $0.35 per share on 300 shares of stock.The journal entry to record this transaction would be to debit Cash for $105 and credit Dividend Revenue for $105.

All companies desire a low return on total assets.

At acquisition,debt securities are:

A company has net income of $130,500.Its net sales were $1,740,000 and its total assets were $2,750,000.Its profit margin equals 7.5%.

Equity securities are:

Foreign exchange rates fluctuate due to changing _______________ and ___________ conditions.

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Accounting for Partnerships

Accounting With Special Journals

Filters

Investments in trading securities are always classified as and are reported as _ on the balance sheet.

Foreign exchange rates fluctuate due to changing _____ and _ conditions.