Accounting Skills (Securities, Derivatives and Investments), Finance And Accounting

Question: Debt securities that a company intends to hold to maturity should be reported on the Balance Sheet ____________________.
A
at acquisition cost

B
at market value

C
at amortized acquisition cost

D
None of these

Note: Not available
1. Report
Question: An elimination entry for the parent company's Investment account would typically NOT include debits to which of the following accounts?
A
Common Stock (Subsidiary Company)

B
Retained Earnings (Subsidiary Company)

C
Equity of Earnings of Subsidiary Company (Parent Company)

D
Investments in Stock of Subsidiary Company (Parent Company)

Note: Not available
1. Report
Question: According to generally accepted accounting principles, which of the following methods must be used to account for investment in common stock of 20 percent to 50 percent?
A
Market value method

B
Equity method

C
Consolidation method

D
All of these are acceptable.

Note: Not available
1. Report
Question: A lease must be accounted for as a capital lease if it meets any one of four conditions. Which of the following is NOT one of those conditions?
A
The lease contains a bargain purchase price option.

B
The lease transfers ownership of property to the lessee.

C
The lease term is 90 percent or more of the estimated economic life of the leased property.

D
All of these are conditions that would cause the lease to be capitalized.

Note: Not available
1. Report
Question: A _____________ is a financial instrument designed to help companies cope with various kinds of risk.
A
derivative instrument

B
hedge fund

C
bond

D
stock option

Note: Not available
1. Report
Question: A derivative acquired to reduce risks involving fluctuations in a market value is called a __________________.
A
stock option

B
trading bond

C
fair value hedge

D
unfair value hedge

Note: Not available
1. Report
Question: In which of the following situations would the lessee enjoy the economic benefits and bear the economic risks of leasing an asset?
A
An asset with an economic life of 10 years is leased for 4 years.

B
The lease agreement contains a bargain purchase option.

C
At the end of the lease term, the lessee returns the leased asset to the lessor.

D
The present value of the lease payments is $70,000 and the fair market value of the leased asset is $95,000.

Note: Answer not sure
1. Report
Question: Which of the following statements is NOT descriptive of a defined contribution pension plan?
A
This type of plan defines the employer's contribution to the plan.

B
The amounts to be received by employees depend on the investment performance of the pension plan.

C
Pension benefits received during retirement are based on wages earned and number of years of employment.

D
The employer's pension expense equals the amount contributed to the pension fund.

Note: Answer not sure
1. Report
Question: Which of the following accounts would NOT be eliminated in the preparation of a consolidated financial statement?
A
Equity in Earnings of Subsidiary Company (Parent Company)

B
Accounts Receivable (Intercompany)

C
Sales (Intercompany)

D
Dividends Declared (Parent Company)

Note: Answer not sure
1. Report
Question: The FASB requires companies to show in income each period the change in the fair value of any derivative that _________________.
A
attempts to reduce the risk in future steams of cash flows

B
does not attempt to hedge fair value or cash flow

C
Both

D
Neither

Note: Answer not sure
1. Report

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Question: Debt securities that a company intends to hold to maturity should be reported on the Balance Sheet ____________________.

Question: An elimination entry for the parent company's Investment account would typically NOT include debits to which of the following accounts?

Question: According to generally accepted accounting principles, which of the following methods must be used to account for investment in common stock of 20 percent to 50 percent?

Question: A lease must be accounted for as a capital lease if it meets any one of four conditions. Which of the following is NOT one of those conditions?

Question: A _____________ is a financial instrument designed to help companies cope with various kinds of risk.

Question: A derivative acquired to reduce risks involving fluctuations in a market value is called a __________________.

Question: In which of the following situations would the lessee enjoy the economic benefits and bear the economic risks of leasing an asset?

Question: Which of the following statements is NOT descriptive of a defined contribution pension plan?

Question: Which of the following accounts would NOT be eliminated in the preparation of a consolidated financial statement?

Question: The FASB requires companies to show in income each period the change in the fair value of any derivative that _________________.