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Unrealized holding gains and losses for trading securities are: a) Reported as a separate com ponent of the shareholder's equity section of the balance sheet, i.e., other comprehensive income b) Included in the determination of income from operations in the period of the change c) Reported as extraordinary items d) Not reported in the income statement nor the balance sheet

Unrealized holding gains and losses for trading securities are: a) Reported as a separate com ponent of the shareholder's equity section of the balance sheet, i.e., other comprehensive income b) Included in the determination of income from operations in the period of the change c) Reported as extraordinary items d) Not reported in the income statement nor the balance sheet

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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6. Unrealized holding gains and losses for trading securities are: a) Reported as a separate com ponent of the shareholder's equity section of the balance sheet, i.e., other comprehensive income b) Included in the determination of income from operations in the period of the change c) Reported as extraordinary items d) Not reported in the income statement nor the balance sheet 7. Level Company owns bonds of Leader Com pany classified as held to maturity. During 2016, the fair value of those bonds increased by $4million. Interest was received for $3 million. What effect did the investment have on Level's 2016 financial statements: a) Total assets increased by $7 million b) Total assets increased by $3 million c) Net income increased by $7 million d) Shareholder's equity increased by $4 million 8. In the statement of cash flow, inflows and outflows of cash from buying and selling trading securities typically are considered: a) Investing activities b) Operating activities c) Financing activities d) Noncash financing activities 9. Felix Ltd. uses the percentage-of-com pletion method to account for work performed on its contracts with a price of $3,000,000. Costs to date and total estim ated costs to com plete during the year were $1,000,000 and 1,750,000. How much gross profit should Felix recognize in the year: a) 1,714,285.71 b) 1,714,285.74 c) 714,285.71 d) 714,285.74 e) None of the above 10. Unrealized holding gains and losses on debt securities classified as available for sale would have the following effects on accum ulated other comprehensive income: a) Gains: Increase, Losses: Increase b) Gains: Decrease, Losses: Decrease c) Gains: Decrease, Losses: Increase d) Gains: Increase, Losses: Decrease
Transcribed Image Text:6. Unrealized holding gains and losses for trading securities are: a) Reported as a separate com ponent of the shareholder's equity section of the balance sheet, i.e., other comprehensive income b) Included in the determination of income from operations in the period of the change c) Reported as extraordinary items d) Not reported in the income statement nor the balance sheet 7. Level Company owns bonds of Leader Com pany classified as held to maturity. During 2016, the fair value of those bonds increased by $4million. Interest was received for $3 million. What effect did the investment have on Level's 2016 financial statements: a) Total assets increased by $7 million b) Total assets increased by $3 million c) Net income increased by $7 million d) Shareholder's equity increased by $4 million 8. In the statement of cash flow, inflows and outflows of cash from buying and selling trading securities typically are considered: a) Investing activities b) Operating activities c) Financing activities d) Noncash financing activities 9. Felix Ltd. uses the percentage-of-com pletion method to account for work performed on its contracts with a price of $3,000,000. Costs to date and total estim ated costs to com plete during the year were $1,000,000 and 1,750,000. How much gross profit should Felix recognize in the year: a) 1,714,285.71 b) 1,714,285.74 c) 714,285.71 d) 714,285.74 e) None of the above 10. Unrealized holding gains and losses on debt securities classified as available for sale would have the following effects on accum ulated other comprehensive income: a) Gains: Increase, Losses: Increase b) Gains: Decrease, Losses: Decrease c) Gains: Decrease, Losses: Increase d) Gains: Increase, Losses: Decrease
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