A) Debt securities. B) Debt or equity securities. C) Equity securities.
Q2. 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) securities held-to-maturity. B) and equity trading securities. C) and equity securities available-for-sale.
Q3. On January 9, 2006, Company X purchased $1,000,000 of government bonds and 100,000 shares of stock in Company S for $2,000,000. They are the first marketable securities purchased in the company's history. The company intends on holding the stock for the foreseeable future and holding the bonds to maturity. As of December 31, the bonds were valued at $900,000, and the stocks were valued at $2,200,000. The bonds paid $50,000 of interest and the stocks paid $20,000 of dividends. In 2006, Company S had earnings per share of $0.90. The marketable securities balance amount shown on the balance sheet is: A) $3,200,000. B) $3,000,000. C) $3,100,000.
Q4. The impact of the marketable securities on net income is: A) $270,000. B) $140,000. C) $70,000.
Q5. Which of the following statements is INCORRECT regarding the classification of debt and equity security investments?
A) If equity and debt securities are available-for-sale securities, any realized and unrealized gains and losses are reported in the income statement. B) If equity and debt securities are trading securities, any realized and unrealized gains and losses are reported in the income statement. C) Debt held-to-maturity is reported in the balance sheet at amortized cost.
| 
发表于 2009-1-5 11:36
| 
