Q33. If Zeisler were to account for the Market Square Corporation shares as trading securities, assuming that the securities do not change in value between the December 15th meeting and the end of the year, the carrying amount of these shares on Zeisler's December 31, 2004 balance sheet would be: A) $3.50 million. B) $2.75 million. C) $2.50 million.
Q34. If Zeisler reclassified the common stock of General Nuclear as a trading security, what effect would it have on Zeisler’s 2004 income statement? A) Net income would decline. B) Net income would increase. C) Reclassifying the security would have no effect on the income statement because gains and losses would be recognized in equity.
Q35. Regarding the statements made by Dupree and Welch about reclassifying Zeisler’s equity investment in Market Square to trading: A) Welch’s statement is incorrect; Dupree’s statement is correct. B) Welch’s statement is correct; Dupree’s statement is incorrect. C) Welch’s statement is incorrect; Dupree’s statement is incorrect.
Q36. If Zeisler were to account for the Market Square Corporation shares using the equity method, assuming that the securities do not change in value between the December 15th meeting and the end of the year, the carrying amount of these shares on Zeisler's December 31, 2004 balance sheet would be: A) $2.75 million. B) $3.50 million. C) $2.60 million.
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发表于 2009-1-8 10:30
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