. Dividends received on an equity-method investment
Responda
increase the investment account
increase dividend revenue.
decrease the investment account.
increase owners’ equity
Questão 4
Questão
The starting point in accounting for all investments is
Responda
equity value.
cost.
c. market value on the Balance-Sheet date.
cost minus dividends.
Questão 5
Questão
Consolidation accounting
Responda
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.
Questão 6
Questão
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
Responda
. $2,000
$3,000.
$4,000
$5,000
Questão 7
Questão
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?
Responda
$5,000
$3,600
$7,000
$2,000
Questão 8
Questão
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
Responda
debited Inventory for $744
recorded a Foreign Currency Transaction Gain of $40.
. debited Inventory for $704.
none of the above.
Questão 9
Questão
One way to prevent a foreign currency transaction loss is to
Responda
. offset foreign currency inventory and PPE.
pay debts as late as possible.
pay in the foreign currency.
collect in your currency.
Questão 10
Questão
Foreign currency transaction gains and losses are reported on the
Responda
. consolidation worksheet.
Income Statement.
statement of cash flows
. Balance Sheet.
Questão 11
Questão
Consolidation of a foreign subsidiary usually results in a
Responda
gain or loss on consolidation.
foreign currency translation adjustment.
foreign currency transaction gain or loss.
LIFO/FIFO difference.
Quer criar seus próprios Quizzesgratuitos com a GoConqr? Saiba mais.