Acct II 8wk Exam 2

Front

Short-term investments are also called marketable securities.

Back

True

Front

Do equity securities reflect a creditor relation such as investments in notes, bonds, and certificates of deposit?

Back

False

Front

Short-term investments are investments that management intends to convert to cash within one year or the operating cycle, whichever is longer, and are readily convertible to cash.

Back

True

Front

Debt investments are recorded at cost when purchased.

Back

True

Front

Any cash dividends received from stock investments with insignificant influence are recorded as Dividend Expense.

Back

False

Front

The Unrealized Gain (or Loss) – Income account is a temporary account that is closed to the Income Summary account at the end of each period.

Back

True

Front

Long-term investments:

Back

Can include funds designated for a special purpose, such as investments in land not used in the company’s operations.

Front

Debt securities that a company intends and is able to hold until maturity are known as:

Back

Held-to-maturity securities.

Front

What are long-term investments?

Back

Investments that are not readily convertible to cash or are not intended to be converted to cash in the short term.

Front

Interest accrued on December 31 for 9% bonds with $100,000 par value, paying interest on October 1 and April 1.

Back

$2,250.