答案和详解如下： 11.The impact of the marketable securities on net income is: A) $70,000. B) $270,000. C) $140,000. D) $170,000. The correct answer was A) The bonds are classified as debt securities held-to-maturity, and the income generated from them is $50,000. The stocks are classified as debt and equity securities available for sale, and although the increased value is reported as an asset, the gain is reported in the securities valuation account in the equity section and not on the income statement. The effect of the stocks on income is the $20,000 of dividends. 12.Which of the following statements is TRUE about securities classified as held to maturity? A) Equity securities can be classified as "held to maturity" if the firm's management has decided to hold the security for more than five years. B) Equity securities can be classified as "held to maturity" if the security is deemed to be "debt-like" with a large and consistent dividend payout. C) Only debt securities can be classified as "held to maturity" securities. D) Equity securities can be classified as "held to maturity" if the security pays a large and consistent dividend and management has decided to hold the security for more than five years. The correct answer was C) Under SFAS 115, only debt securities, which the firm has the positive intent and ability to hold until final maturity, may be classified as held to maturity. 13.Which of the following statements about the various classifications of securities held by a firm is FALSE? A) A firm which invests in the debt securities of another firm cannot classify these securities as "held to maturity" if they have the positive intent and ability to hold the securities until final maturity. B) Equity securities of other companies cannot be classified as "held to maturity" under SFAS 115. C) Trading securities are, by definition, current assets because the firm intends to trade these securities in the near term. D) Under SFAS 115, available for sale securities can include both debt and equity securities of other companies. The correct answer was A) Under SFAS 115, only debt securities, which the firm has the positive intent and ability to hold until final maturity, may be classified as held to maturity. 14.According to SFAS No. 115, a category of securities is carried on the company balance sheet at cost. This category of securities is called debt: A) and equity trading securities. B) securities held-to-maturity. C) and equity securities available-for-sale. D) securities held-to-call. The correct answer was B) When debt securities are purchased with both the intent and ability to hold them until they mature, they are recorded on the balance sheet at cost. 15.Which of the following statements is INCORRECT regarding the classification of debt and equity security investments? A) If equity and debt securities are trading securities, any realized and unrealized gains and losses are reported in the income statement. B) Debt and equity securities are reported on the balance sheet at fair market value for both available-for-sale and trading securities classification. C) Debt held-to-maturity is reported in the balance sheet at amortized cost. D) If equity and debt securities are available-for-sale securities, any realized and unrealized gains and losses are reported in the income statement. The correct answer was D) In the case of available-for-sale securities, unrealized gains and losses are excluded from the income statement and are reported as a component of shareholders' equity. 16.SFAS No. 115 establishes different categories of securities with distinct ways of treating them on the financial statements of the company. One category requires the securities to be carried at fair value on the balance sheet with unrealized gains and losses excluded from the income statement. This category of security classification is called debt: A) and equity trading securities. B) and equity securities available-for-sale. C) securities held-to-maturity. D) securities held-to-call.
The correct answer was B)
According to SFAS No.115, if securities are designated as debt and equity securities available-for-sale they can be sold to meet the liquidity and other needs of the company. As such, the securities are to be carried at fair value on the balance sheet with unrealized gains and losses excluded from the income statement.
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发表于 2008-4-2 16:12
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