01 May WHICH OF THE FOLLOWING STATEMENTS WOULD BE CORRECT FOR THE YEAR-END ADJUSTING ENTRY?
Assume that, at year-end, the fair value of investments held by VAP Co. is $104,000 and the carrying amount is $110,000. There is a zero prior balance in fair value adjustment account. Which of the following statements would be correct for the year-end adjusting entry?
a. VAP will debit $6,000 to Unrealized Holding Gain or Loss- Income if the investment is in available for sale debt securities
b. VAP will credit $6,000 to Unrealized Holding Gain or Loss- Income if the investment is in available for sale debt securities
c. VAP will debit $6,000 to Unrealized Holding Gain or Loss- equity if the investment is in available for sale debt securities
d. VAP will credit $6,000 to Unrealized Holding Gain or Loss- Income if the investment is in trading securities
2. Which of the following statements is correct?
a. Unrealized holding gains or losses on held to maturity debt securities are reported as a separate component of stockholders equity
b. Trading securities are reported at fair value and available for sale debt securities are reported at amortized cost
c. Unrealized holding gains or losses on available for sale debt securities are reported as a separate component of stockholders equity, but such gain or losses are not recognized for held to maturity debt securities.
d. Held to maturity debt securities and available for sale debt securities are reported at amortized cost.
3. Unrealized holding gains and losses on investments in equity securities accounted for using the equity method are
a. Recognized in net income
b. Not recognized
c. Recognized as other comprehensive income and as a separate component of stockholders equity
d. All of the above statements are incorrect.
4. Which of the following statements is correct?
a. A refund liability is recorded by the consignee upon receipt of the goods on consignment.
b. When goods are sold with a right of return, the transaction is recorded as a repurchase agreement.
c. Service type warranties are recorded as a separate performance obligation.
d. Assurance type warranties are recorded as a separate performance obligation.
5. A contract modification is accounted for using a prospective approach if
a. The promised goods or services are distinct.
b. The company has the right to receive an amount equal to the standalone price.
c. The new products are not priced at the proper standalone price or if they are not distinct.
d. Both a and b are correct.
6. When using the indirect method to prepare the operating section of a statement of cash flows, which of the following is subtracted from net income to compute cash flow from operating activities?
a. Decrease in accounts receivable.
b. Gain on sale of land.
c. Amortization of patent.
d. Increase in accounts payable.
7. Under the quantitative test, a segment is considered reportable if
a. Both the segment revenues are 10% or more of the combined revenues (excluding intersegment revenue) of all segments, and the Identifiable assets are 10% or more of the combined assets of all segments.
b. Both the segment revenues are 10% or more of the combined revenues (excluding intersegment revenue) of all segments, and the net profit (loss) is 10% or more of the combined net profit or loss.
c. The absolute amount of a segments profit or loss is 10% or more of the greater (in absolute amount) of the combined operating profit of all segments or the combined operating loss of all segments that reported a loss.
d. Both a and b are correct.
8. Which of the following statements is correct, with respect to interim reporting?
a. Under the discrete approach each interim period is treated as an integral part of the annual report
b. Under the integral approach each interim period is treated as an integral part of the annual report
c. Under the integral approach each interim period is treated as a separate accounting period
d. All of the above statements are incorrect
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.