2) A typical investment to house excess cash until needed is
3) Pension funds and mutual funds regularly invest in debt and stock securities to
4) On January 1, 2008, Turner Company purchased at face value, a $1,000, 7% bond that pays interest on January 1 and July 1. Turner Company has a calendar year end.
The entry for the receipt of interest on July 1, 2008, is
5) If a short-term debt investment is sold, the Investment account is
6) Steven Co. purchased 30, 6% Johnston Company bonds for $30,000 cash plus brokerage fees of $300. Interest is payable semiannually on July 1 and January 1. The entry to record the December 31 interest accrual would include a
7) If an investor owns less than 20% of the common stock of another corporation as a long-term investment,
8) If the equity method is being used, cash dividends received
9) If one company owns more than 50% of the common stock of another company,
10) The contra-account, Market Adjustment, is also called a(n)
11) The balance in the Unrealized Loss—Equity account will
12) If the cost of an available-for-sale security exceeds its fair value by $40,000, the entry to recognize the loss
13) Which of the following is a major difference when accounting for long-term debt investments versus short-term debt investments?
14) A company that acquires less than 20% ownership interest in another company should account for the stock investment in that company using
15) Securities bought and held primarily for sale in the near term to generate income on short-term price differences are