ACC 557 Week 9 Chapter 12 Quiz (all possible questions)\t\u00a0\tThis Tutorial contains All possible Questions from this chapter (it contains more than 200 questions set)\t\u00a0\tSOME SAMPLE QUESTIONS ARE GIVEN BELOW OUT OF THOSE 200 QUESTIONS\t\u00a0\t1-\u00a0\tMultiple Choice Question 57\tEck Corporation sells 250 shares of common stock being held as an investment. The shares were acquired six months ago at a cost of $25 a share. Eck sold the shares for $40 a share. The entry to record the sale is\tCash\u00a0 10,000\tGain on Sale of Stock Investments\u00a0 3,750\tStock Investments\u00a0 6,250\tStock Investments\u00a0 10,000\tCash\u00a0 10,000\tCash\u00a0 10,000\tStock Investments\u00a0 10,000\tCash\u00a0 6,250\u00a0\tLoss on Sale of Stock Investments\u00a0 3,750\u00a0\tStock Investments\u00a0 10,000\t2-\u00a0\tMultiple Choice Question 45\tOn January 1, Talent Company purchased as a short-term investment a $1,000, 8% bond for $1,050. The bond pays interest on January 1 and July 1. The bond is sold on October 1 for $1,200 plus accrued interest. Interest has not been accrued since the last interest payment date. What is the entry to record the cash proceeds at the time the bond is sold?\tCash\u00a0 1,200\u00a0\tDebt Investments\u00a0 1,200\tCash\u00a0 1,220\u00a0\tDebt Investments\u00a0 1,050\tGain on Sale of Debt Investments\u00a0 150\tInterest Revenue\u00a0 20\tCash\u00a0 1,220\u00a0\tDebt Investments\u00a0 1,200\tInterest Revenue\u00a0 20\tCash\u00a0 1,200\u00a0\tDebt Investments\u00a0 1,050\tGain on Sale of Debt Investments\u00a0 150\t3-\u00a0\tMultiple Choice Question 117\tAt the end of its first year, the trading securities portfolio consisted of the following common stocks.\t\u00a0 Cost\u00a0 Fair Value\tAtrium Corporation\u00a0 $ 46,400\u00a0 $ 50,000\tBarnes Inc.\u00a0 60,000\u00a0 55,800\tCantor Corporation\u00a0 80,000\u00a0 76,000\t\u00a0 $186,400\u00a0 $181,800\tIn the following year, the Barnes common stock is sold for cash proceeds of $56,000. The gain or loss to be recognized on the sale is a\tloss of $4,000.\tgain of $1,200.\tgain of $200.\tloss of $4,200.\t4-\u00a0\tMultiple Choice Question 40\tAt the time of acquisition of a debt investment,\tthe Stock Investments account is debited when bonds are purchased.\tthe Investment account is credited for its cost plus brokerage fees.\tno journal entry is required.\tthe cost principle applies.\t5-\u00a0\tMultiple Choice Question 79\tThe account, Stock Investments, is\ta general ledger control account.\tanother name for Debt Investments.\ta subsidiary ledger account.\ta long-term liability account.\t6-\u00a0\tMultiple Choice Question 59\tTan Company had these transactions pertaining to stock investments:\tFeb. 1 Purchased 3,000 shares of Norton Company (10%) for $48,800 cash plus brokerage fees of $1,400.\tJune 1 Received cash dividends of $2 per share on Norton stock.\tOct. 1 Sold 1,200 shares of Norton stock for $24,000 less brokerage fees of $600.\tThe entry to record the purchase of the Norton stock would include a\tcredit to Cash for $48,800.\tdebit to Stock Investments for $48,800.\tdebit to Stock Investments for $50,200.\tdebit to Investment Expense for $1,400.\t7-\u00a0\tMultiple Choice Question 94\tMission Inc. earns $450,000 and pays cash dividends of $150,000 during 2013. Cox Corporation owns 70,000 of the 210,000 outstanding shares of Mission.\tHow much revenue from investment should Cox report in 2013?\t$150,000\t$200,000\t$50,000\t$100,000\t8-\u00a0\tMultiple Choice Question 138\tWhich of the following reasons best explains why a company that experiences seasonal fluctuations in sales may purchase investments in debt or stock securities?\tThe company may have excess cash.\tThe company may invest for speculative reasons to increase the value in pension funds.\tThe company may generate a significant portion of its earnings from investment income.\tThe company may invest for the strategic reason of establishing a presence in a related industry.\t9-\u00a0\tMultiple Choice Question 115\tThe balance sheet presentation of an unrealized loss on a non-trading security is similar to the statement presentation of\ttreasury stock.\tdiscount on bonds payable.\tprepaid expenses.\tallowance for doubtful accounts.\t10-\u00a0\tMultiple Choice Question 142\tA company that acquires less than 20% ownership interest in another company should account for the stock investment in that company using\tthe significant method.\tthe equity method.\tconsolidated financial statements.\tthe cost method.\t11-\u00a0\tMultiple Choice Question 41\tWhich of the following is not a true statement regarding short-term debt investments?\tInvestments are frequently government or corporate bonds.\tThe securities usually pay interest.\tThis type of investment must be currently traded in the securities market.\tDebt investments are recorded at the price paid less brokerage fees.\t12-\u00a0\tMultiple Choice Question 81\tRevenue is recognized when cash dividends are received under\tthe cost method.\tthe equity method.\tthe controlling interest method.\tboth the cost and equity methods.\t13-\u00a0\tMultiple Choice Question 145\tAn unrealized loss on non-trading securities is\tclosed-out at the end of the accounting period.\tdeducted from the cost of the investment.\treported as a separate component of stockholders’ equity.\treported under Other Expenses and Losses in the income statement.\t14-\u00a0\tMultiple Choice Question 93\tMission Inc. earns $600,000 and pays cash dividends of $150,000 during 2013. Cox Corporation owns 70,000 of the 210,000 outstanding shares of Mission.\tWhat amount should Cox show in the investment account at December 31, 2013 if the beginning of the year balance in the account was $40,000?\t$190,000\t$200,000\t$175,000\t$180,000\t15-\u00a0\tMultiple Choice Question 108\tThe contra-account, Fair value Adjustment, is also called a(n)\tvaluation account.\toffset account.\topposite account.\tadjustment account.<\/p>\n","protected":false},"excerpt":{"rendered":"
ACC 557 Week 9 Chapter 12 Quiz (all possible questions) \u00a0 This Tutorial contains All possible Questions from this chapter (it contains more than 200 questions set) \u00a0 SOME SAMPLE QUESTIONS ARE GIVEN BELOW OUT OF THOSE 200 QUESTIONS \u00a0 Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-200300","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200300","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=200300"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200300\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=200300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=200300"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=200300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}