Investments in trading securities quizlet

Which of the following is investments in trading securities quizlet a debt security? All of these are debt securities.

Interest Receivable and to credit Interest Revenue for the amount of interest accrued since the last interest receipt date. Interest Receivable and to credit Interest Revenue for the total amount of interest to be received at the next interest receipt date. Which of the following is not correct in regard to trading securities? They are held with the intention of selling them in a short period of time. Unrealized holding gains and losses are reported as part of net income. Any discount or premium is not amortized.

An available-for-sale debt security is purchased at a discount. Which of the following is correct about the effective-interest method of amortization? The effective interest method applied to investments in debt securities is different from that applied to bonds payable. Amortization of a discount decreases from period to period. Amortization of a premium decreases from period to period. The effective-interest method produces a constant rate of return on the book value of the investment from period to period. Which of the following is not generally correct about recording a sale of a debt security before maturity date?

Accrued interest will be received by the seller even though it is not an interest payment date. An entry must be made to amortize a discount to the date of sale. The entry to amortize a premium to the date of sale includes a credit to the Premium on Investments in Debt Securities. A gain or loss on the sale is not extraordinary. Santo Corporation declares and distributes a cash dividend that is a result of current earnings. An investor has a long-term investment in stocks.

The investor should always use the equity method to account for its investment. The investor should use the equity method to account for its investment unless circum-stances indicate that it is unable to exercise “significant influence” over the investee. The investor must use the fair value method unless it can clearly demonstrate the ability to exercise “significant influence” over the investee. The investor should always use the fair value method to account for its investment. Koehn Corporation accounts for its investment in the common stock of Sells Company under the equity method.

After applying the equity method, the Investment in Club Co. All of the above are true of the fair value option. A debt security is transferred from one category to another. All of the above are considered methods of “gains trading” or “cherry picking. Which of the following are considered equity securities? All of the above are characteristics of a variable-interest entity.

GAAP, which of the following models may be used to determine if an investment is consolidated? On August 1, 2010, Dambro Co. On July 1, 2011, Patton Company should increase its Held-to-Maturity Debt Securities account for the Scott Co. For the year ended December 31, 2011, Patton Company should report interest revenue from the Scott Co. January 1, 2011, with interest payable on July 1 and January 1. At December 31, 2011, the fair value of the Ritter, Inc.

At April 1, 2012, Landis Co. Available-for-Sale Debt Securities, what should Landis Co. Kasnic Corporation at 104 plus accrued interest. On October 1, 2010, Renfro Co. On November 1, 2010, Horton Co.

7,500 was paid for the accrued interest. On October 1, 2010, Menke Co. 6,000 was paid for accrued interest. On January 3, 2010, Moss Co. Interest is payable each December 31.

January 1, 2010, with interest payable on July 1 and January 1. At December 31, 2010, the fair value of the Carlin, Inc. At February 1, 2011, Richman Co. Available-for-Sale Debt Securities, what should Richman Co.

During 2010 Logic Company purchased 4,000 shares of Midi, Inc. The investment was classified as a trading security. What amount of gain or loss would Instrument Corp. December 31, 2011 related to its investments? What amount would be reported as accumulated other comprehensive income related to investments in Instrument Corp. At December 31, 2011, Atlanta Co. Ignoring income taxes, what amount should be reported as a charge against income in Kramer’s 2010 income statement if 2010 is Kramer’s first year of operation?