ACC 291 Week 3 Chapter 12 Practice Quiz 1

In this file ACC 291 Week 3 Chapter 12 Practice Quiz 1 you can find right answers on the following questions:

  1. Which of the following is not a primary reason why corporations invest in debt and equity securities?
  2. Debt investments are initially recorded at:
  3. Hanes Company sells debt investments costing $26,000 for $28,000, plus accrued interest that has been recorded. In journalizing the sale, credits are to:
  4. Pryor Company receives net proceeds of $42,000 on the sale of stock investments that cost $39,500. This transaction will result in reporting in the income statement a:
  5. The equity method of accounting for long-term investments in stock should be used when the investor has significant influence over an investee and owns:
  6. Assume that Horicon Corp acquired 25% of the common stock of Sheboygan Corp. on January 1, 2011, for $300,000. During 2011 Sheboygan Corp. reported net income of $160,000 and paid total dividends of $60,000. If Horicon uses the equity method to account for its investment, the balance in the investment account on December 31, 2011, will be:
  7. Using the information in question 6, what entry would Horicon make to record the receipt of the dividend from Sheboygan?
  8. You have a controlling interest if:
  9. Which of the following statements is not true? Consolidated financial statements are useful to:
  10. At the end of the first year of operations, the total cost of the trading securities portfolio is $120,000. Total fair value is $115,000. The financial statements should show:
  11. At December 31, 2011, the fair value of available-for-sale securities is $41,300 and the cost is $39,800. At January 1, 2011, there was a credit balance of $900 in the Market Adjustment
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  • *** 291 **** * ******* 12 Practice **** *
    Attached: ACC 291 Week 3 Chapter 12 Practice Quiz


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