When a business has Available-for-Sale Securities, the account Unrealized Loss onAvailable-for-Sale Investments should be included in the:Statement of Retained EarningsIncome statementBalance sheet as an addition to Long-Term Investments in StockBalance sheet as a deduction in Stockholders' Equity

Available-for-sale securities Available-for-securities are referred to as equity or debt security…

When a business has Available-for-Sale Securities, the account Unrealized Loss on Available-for-Sale Investments should be included in the: O Statement of Retained Earnings Income statement Balance sheet as an addition to Long-Term Investments in Stock Balance sheet as a deduction in Stockholders' Equity

When a business has Available-for-Sale Securities, the account Unrealized Loss on Available-for-Sale Investments should be included in the: O Statement of Retained Earnings Income statement Balance sheet as an addition to Long-Term Investments in Stock Balance sheet as a deduction in Stockholders' Equity

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The type of account and normal balance of retained earnings is stockholders equity, credit contra asset, credit asset, debit liabilty, credit
Liabilities and stockholders' equity are: O increases in assets resulting from profitable operations O economic resources used by a business entity. O sources of financing for economic resources. shown on the income statement in calculating net income.
Sales revenue is reported in the stockholder’s equity section of the balance sheet? True/false
For fi nancial assets classifi ed as held to maturity, how are unrealized gains and losses refl ected in shareholders’ equity?B . Th ey fl ow through retained earnings.
Common Stock investments using the fair value method are: A. reported at fair value on the balance sheet. B. reported at cost on the balance sheet. C. reported with property, plant and equipment on the balance sheet. D. not reported on the balance sheet.
Which of the following is classified as a financing activity? Receipt of dividend income Receipt of interest on loan receivable Payment of dividends Investment in another company’s stock
. How does the issuance of common stock affect the accounting equation? a) Increases assets and decreases liabilities b) Increases assets and increases equity c) Increases assets and increases liabilities d) Increases liabilities and decreases equity
The date on which liability for dividends must be recorded. * a. Date of payment b. Date of record c. Declaration date d. Date of issuance
Stockholders' equity consists of which of the following? Multiple Choice Paid-in (or contributed) capital and retained earnings. Retained earnings and cash. Long-term assets. Paid-in (or contributed) capital and par value. Premiums and discounts. k
Expenses in acquiring another company may be related to the issuance of stocks , legal , financial and accounting expenses . Explain how each of those expenses are treated in the books of the acquired
Which of the following results in an increase in the Equity in the Investee Income acct. when applying the equity method? Amortizations of purchase price over book value on date of purchase Amortization since date of purchase of purchase price over book value on date of purchase Sale of portion of the investment at a gain to the investor Investors share of gross profit from intra-entity inventory sale for the prior year Sale of a portion of the investment at a loss
When using the equity method of accounting, when is revenue recorded on the books of the investor company?a. When the fair value of the affiliate stock increases.b. When a dividend is received from the affiliate.c. When the affiliate company reports net income.d. Both b and c above.