Finance Ch 13 Quiz Multiple Choice 20151.Investments in debt and equity securities that are held for current resale by banks andstockbrokerage firmsa.are termedb.available-for-sale securitiesc.trading securitiesd.held-to-maturity securitiesmarketable securities2.Which of the following categories of investments are reported at their fair values on thebalance sheet andhave unrealized holding gains and losses included as a separate component ofstockholders' equity?a.held-to-maturity debt securitiesb.marketable securitiesc.available-for-sale securitiesd.trading securities3.Which of the following securities are reported at their amortized cost on the balance sheetdate?a.held-to-maturity debt securitiesb.marketable securitiesc.available-for-sale securitiesd.trading securities4.With consolidation, control generally occurs when the investor owns what percentage of thevoting stock ofthe investee?a.over 50%b.between 20% and 50%c.less than20%d.over 40%5.Which of the following methods of accounting for investments is appropriate when theinvestor has significant influence over the investee?a.equity methodb.consolidationc.cost methodd.lower of cost or market method6.How isthe premium or discount on held-to-maturity bond investments presented on thebalance sheet?Preview Mode
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