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20 Cards in this Set
- Front
- Back
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in accounting for stock investments between 20% and 50 %, the ____ method is used |
equity |
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for accounting purposes, the method used to account for long term investments in common stock is determined by |
the extent of an investor's influence on the operating and financial affairs of the investee |
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under the equity method of accounting for long term investments in common stock, when a dividend is received from the investee company |
the stock investment account is decreased |
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changes in the fair market value of investments are reported as part of net income for |
trading securities |
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short term stock investments should be valued on the balance sheet at |
fair value |
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reporting investments at fair value is |
applicable to both debt and stock securities |
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what would be reported under Other Revenues and Gains |
Unrealized gain (loss) on available for sale securities |
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statement of cash flows reports each of the following ezcept |
cash sales |
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lending money and collecting the loans are |
investing activities |
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the cash effects of transactions that create revenues and expenses are |
operating activities |
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the aquisition of land by issuing common stock is |
a noncash transaction which is not reported in the body of a statement of cash flows |
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the order of presentation of activities on the statement of cash flows is |
operating, investing, financing |
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cash receipts from interest and dividends are classified as |
operating activities |
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what does not affect cash during a period |
write off of an uncollectible account |
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where common stock issued for cash would appear where in the indirect statement of cash flows |
financing activities |
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if accounts receivable increased during the period |
revenues on accrual basis are greater than revenues on cash basis |
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in accounts payable have increased during a period |
revenues on an accrual basis are less than revenues on a cash basis |
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On Jan 1, 2012, Danner Company purchased at face value, a $100, 8% bond that pays interest on Jan 1 and July 1. Danner Co. has a calendar year end. The entry for the receipt of interest on July 1 is |
Cash.............................40 Interest Rev...................40 |
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On Jan 1, 2012, Danner Company purchased at face value, a $1,000, 10% bond that pays interest on Jan 1 and July 1. Milton Co. has a calendar year end. The adjusting entry on Dec 31, 2012, is |
Interest Rec...................50 Interest Rev.....................50 |
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Eck Corp. sells 250 shares of common stock being held as an investment. The shares were acquired 6 months ago at a cost of $25 a share. Eck sold the shares for $40 a share. The entry to record the sale is |
Cash...........................10,000 Gain on Sale of Stock Invest........3,750 Stock Investments........................6,250 |
