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1) Held-to-maturity securities a

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1) Held-to-maturity securities

a.include equity securities.

b.are reported at fair value.

c.are not intended to be held until the maturity date.

d.include corporate notes and bonds.

 

2) Edwardo Company owns 87% of the outstanding stock of Vincenza Company. Vincenza Company is referred to as the

a.parent.

b.investor.

c.subsidiary.

d.partner.

 

3) The accounting for bond investments includes all of the following except

a.dividend revenue.

b.purchase of bonds.

c.sale of bonds.

d.interest revenue.

 

4) _____________ securities are investments in preferred or common stock that represent ownership in a company.

a.Debt

b.Equity

c.Market

d.Investment

 

5) Generally accepted accounting principles require the use of fair value for all of the following except

a.trading securities.

b.available-for-sale securities.

c.held-to-maturity securities.

d.None of these choices are correct.

 

6) Which of the following is the correct computation of comprehensive income?

a.Retained Earnings ± Other Comprehensive Income = Comprehensive Income

b.Net Income ± Other Comprehensive Income = Comprehensive Income

c.Total Stockholders' Equity ± Accumulated Other Comprehensive Income = Comprehensive Income

d.None of these choices are correct.

 

7) Ridgewood Company has 25,000 shares of cumulative 2% preferred stock, $50 par and 150,000 shares of $25 par common stock. During the current year, $62,500 was distributed as dividends. Determine the numerator in the dividend yield calculation.

a.$1.00

b.$1.25

c.$0.25

d.$25