Q11. Using the provisions of SFAS 115, if the securities are classified as trading securities the balance sheet value for the portfolio at year-end 2005 is: A) $12,500, and record an unrealized loss of $1,500. B) $12,500, and record no gains or losses. C) $14,000, and record no gains or losses.
Q12. Using the provisions of SFAS 115, if the securities are classified as trading securities the balance sheet value for the portfolio at year-end 2006 is: A) $16,500, and record an unrealized gain of $2,500. B) $14,000, and record an unrealized gain of $2,500. C) $16,500, and record an unrealized gain of $4,000.
Q13. Which of the following securities will most likely be characterized as an available-for-sale security? A) Debt securities that a company has a positive intent and ability to hold to maturity. B) Equity securities representing 30% ownership in another firm. C) Debt or equity securities that are carried on the balance sheet at fair market value and may be sold for liquidity purposes.
Q14. Trading securities are defined as: A) debt and equity securities that are very liquid and easy to sell. B) equity securities representing 20% to 50% ownership in a public firm. C) debt and equity securities acquired with the intent of selling them in the near future.
Q15. Under U.S. GAAP rules, where an investor owns 41% of the voting shares of an investee and is able to control the investee, which of the following methods of accounting is most appropriate to use? A) Equity method. B) Consolidation method. C) Proportionate consolidation method.
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发表于 2009-1-5 11:50
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