16897655
Pregunta 1
Respuesta
-
. investments of $110,850.
-
unrealized loss of $19,750.
-
investments of $91,100
-
dividend revenue of $3,290
Pregunta 2
Respuesta
-
gain on sale of investment of $19,900.
-
. unrealized gain of $19,900.
-
dividend revenue of $3,290
-
investments of $89,050.
Pregunta 3
Pregunta
. Dividends received on an equity-method investment
Respuesta
-
increase the investment account
-
increase dividend revenue.
-
decrease the investment account.
-
increase owners’ equity
Pregunta 4
Pregunta
The starting point in accounting for all investments is
Respuesta
-
equity value.
-
cost.
-
c. market value on the Balance-Sheet date.
-
cost minus dividends.
Pregunta 5
Pregunta
Consolidation accounting
Respuesta
-
combines the accounts of the parent company and those of the subsidiary companies.
-
eliminates all liabilities
-
reports the receivables and payables of the parent company only
-
all of the above.
Pregunta 6
Pregunta
On January 1, 20X0, Maxspace, Inc., purchased $100,000 face value of the 5% bonds
of Mail Frontier, Inc., at 107. The bonds mature on January 1, 20X5. For the year ended
December 31, 20X5, Maxspace received cash interest of
Respuesta
-
. $2,000
-
$3,000.
-
$4,000
-
$5,000
Pregunta 7
Pregunta
Return to Maxspace, Inc.’s bond investment in the preceding question. For the year
ended December 31, 20X3, Maxspace received cash interest of $5,000. What was the interest
revenue that Maxspace earned in this period?
Respuesta
-
$5,000
-
$3,600
-
$7,000
-
$2,000
Pregunta 8
Pregunta
Providence Systems purchased inventory on account from Megasonic. The price was
¥80,000, and a yen was quoted at $0.0088. Providence paid the debt in yen a month later, when
the price of a yen was $0.0093. Providence
Respuesta
-
debited Inventory for $744
-
recorded a Foreign Currency Transaction Gain of $40.
-
. debited Inventory for $704.
-
none of the above.
Pregunta 9
Pregunta
One way to prevent a foreign currency transaction loss is to
Respuesta
-
. offset foreign currency inventory and PPE.
-
pay debts as late as possible.
-
pay in the foreign currency.
-
collect in your currency.
Pregunta 10
Pregunta
Foreign currency transaction gains and losses are reported on the
Respuesta
-
. consolidation worksheet.
-
Income Statement.
-
statement of cash flows
-
. Balance Sheet.
Pregunta 11
Pregunta
Consolidation of a foreign subsidiary usually results in a
Respuesta
-
gain or loss on consolidation.
-
foreign currency translation adjustment.
-
foreign currency transaction gain or loss.
-
LIFO/FIFO difference.
¿Quieres crear tus propios Tests gratis con GoConqr? Más información.