14. For available-for-sale securities, a decline in value due to a temporary decline in market value below cost is a. disclosed in the financial statements by means of a footnote b. disclosed as a reduction from stockholders' equity on the balance sheet c. disclosed as a loss on the income statement d. not disclosed because the decline in value is only temporary

Q: Trading securities are: O reported at fair value on the balance sheet and as unrealized gains or…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which of the following statements is false? The cost of debt securities is highest due to their…

A: The situation under which any entity can encounter loss, injury or damage is known as a risk. Risks…

Q: The net effect of the entries to recognize the write-off under the allowance method is to: Multiple…

A: Solution: When accounts receivables is written off using allowance method, allowance for doubtful…

Q: For a company holding significant net financial assets (NFO), after issuing some new debt, its risk…

A: By issues of new debt there would be more interest to be paid and liabilities of company would…

Q: Which of the following statement is false in regards to Share premium? a. It will be shown under…

A: (a) Share premium will be shown under equity section in the balance sheet (b) Share premium will be…

Q: When treasury stock is sold below cost, the Paid-in Capital, Treasury Stock account is debited for…

A: Treasury stock refers to previously issued stock that the issuing business buys back from…

Q: Statement 1: Financial assets held for trading shall be measured at fair value through profit or…

A: Securities can be classified under three categories which are, (1) Held to maturity  (2) Trading…

Q: Which of the following accounts is not credited to 690 Period Profit or Loss Account ?

A: The answer for the multiple choice question and relevant explanation are presented hereunder :…

Q: Dividend revenue is recognized for trading securities and available for sale securities even if held…

A: Solution Concept Dividend is recognized in income statement for trading securities if they are held…

Q: 16. When the market value of a company's available-for-sale investments is lower than its cost, the…

A: When the market value of a company's available-for-sale investments is lower than its cost, the…

Q: revaluation or restatement of assets and liabilitie:

A: Equity is calculated by deducting total liabilities from total assets. It can be more clearly…

Q: eported earnings become overstated as a result of failure to record  a. the amortization of premium…

A: Solution Concept The reported earnings is overstated when the expenses has not been recorded or…

Q: Which of the following is not popular in the present business scenario? O a. None of the options O…

A: Business can be defined as the organization or entity  that is engaged in commercial, professional,…

Q: TB MC Qu. 10-139 (Static) Why doesn't stockholders' equity equal the... Why doesn't stockholders'…

A: Stockholders equity is total amount of equity attributable to the owners of the business. This is…

Q: Which of the following is False in regards to Share premium account? a. It will be shown under the…

A: THE SHARE PREMIUM ACCOUNT REPRESENTS THE DIFFERENCE BETWEEN THE PAR VALUE OF THE SHARES ISSUED AND…

Q: I. No entry is required on date of declaration. II. Dividends declared is closed to the retained…

A: Dividend means the amount given to shareholder of the company as profit distribution by…

Q: The financial statements do not provide information about an entity’s __________. a. None of the…

A: The financial statements provide various information about an entity’s equity, liabilities and…

Q: Q16)Which accounting concept specifies the practice of crediting closing stock to the trading…

A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…

Q: n stock appreciation right, decline in fair value of share shall be accounted as A. Loss and…

A: The prices of shares goes up and down and adjustment are to be done for that.

Q: Which statement is true? a. Stock must have either a par or stated value b. If nominal, par value…

A: a) False. A stock that that has neither par value nor stated value, will be considered on the whole…

Q: Accounting type Question: Bonus shares cannot be issued out of: A. Profit and Loss a/c B. Capital…

A: Bonus shares are issued by cashing in on the free reserves of the company. The assets of a company…

Q: Which statement is not true?

A: In the above question, there are four statements; we must identify which of the four statements is…

Q: Grouper Co. had purchased 190 shares of Washington Co. for $43 each this year (Oregon Co. does not…

A: Remaining shares = Total shares - shares sold = 190-95 = 95 shares

Q: Which of the following is a false statement about applying the equity method? O A. One of the…

A: In accounting, the equity method is used to account for investments when one company holds…

Q: S1] When the entity issues a long-term debt instrument, it exposes itself to solvency risk. [S2]…

A: The correct answer is given in the following steps for your reference.

Q: increase total assets and stockholders' equity. have no effect on total assets or stockholders'…

A: Some of the debts are not collected and that means there is no chance that there would be recovery…

Q: If a company resells treasury stock at a loss, and that amount exceeds any balance in the treasury…

A: Answer.  Treasury stock is recorded at cost.  If traesury stock is purchased at loos then additional…

Q: 9. A company invests in marketable securities to:   a) Increase liquidity   b) Reduce tax liability…

A: The incorrect answers are: b) Reduce tax liabilityWhile some investments may provide tax benefits,…

Q: At each reporting date, companies adjust debt investments which fails in cash flows test to fair…

A: The question is related to the IFRS 9 Financial Instruments.

Q: 27 - Which of the following accounts is not included in the default values? A) Checks Received B)…

A: Default account are commonly used/prevalent account heads. These generally include cash, bank,…

Q: If a company chooses the fair value option, a decrease in the fair value of its bonds because of the…

A: The fair value option is the alternative for a business to record its financial instruments at their…

Q: If the allowance method is used, how does recording the recovery of an uncollectible account affect…

A: Solution: Recovery of uncollectible account is recorded by making two entries as under: 1.…

Q: Statement 1: Noncumulative preference dividends in arrears are not paid and not disclosed.…

A: Dividend is the amount which is paid to the shareholders of the entity in respect of their…

Q: loss on trading securities? a. Stockholders' equity decreases, and liabilitie

A: The correct statement is : a) Stockholder's equity decrease , and liabilities increase .

Q: Reported earnings become overstated as a result of failure to record which of the following: a. the…

A: THIS is one of the most common  in financial statement. there may be a case of manipulation of…

Q: PART A: Common stock has seniority relative to preferred stock. True False PART B: Issuance or…

A: Similar to bonds, preferred stocks are higher ranking than common stock. But, bonds have more…

Q: An entity need not disclose...   a. A description of the nature and purpose of each reserve within…

A: This question deals with the which things entity does not needs to disclose. As per para 79 of the…

Q: Equity investments held for trading fall under FVPL II-Equity Investments at FVPL are presented as…

A: In the given case equity investment held for trading is an investment which may be debt or equity…

Q: Which of the following accounts is not credited to 690 Period Profit or Loss Account ?    a) Prior…

A: Profit and loss account is a statement which shows the company whether profit has been earned or…

Q: Choose the incorrect statement below: A. Retained earnings are the funds

A: Option d is incorrect

Q: All equity securities and investments in debt securities that are intended to be sold in the near…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: Which of the following items affect equity without going through the income statement? Group of…

A: A) Purchase of treasury stock decreases equity and assets and not dealt in income statement. B)…