Investment and Securities Quiz

Investments in bonds that management intends to hold to maturity are called held-to-maturity securities.

• True

• False

Investment in Bonds are reported on the balance sheet at lower of cost or market.

• True

• False

Available-for-sale securities are securities that management expects to sell in the future, but are not actively traded for profit.

• True

• False

Temporary investments are recorded at their cost which would include broker's commissions.

• True

• False

Temporary investments are reported on the balance sheet at cost.

• True

• False

The corporation owning all or a majority of the voting stock of another corporation is known as the parent company.

• True

• False

If the standard to produce a given amount of product is 1,000 units of direct materials at $11 and the actual was 800 units at $12, the direct materials quantity variance was $2,200 unfavorable.

• True

• False

If the standard to produce a given amount of product is 1,000 units of direct materials at $11 and the actual was 800 units at $12, the direct materials price variance was $800 unfavorable.

• True

• False

If the standard to produce a given amount of product is 1,000 units of direct materials at $11 and the actual was 800 units at $12, the direct materials price variance was $800 favorable.

• True

• False

If the standard to produce a given amount of product is 600 direct labor hours at $15 and the actual was 600 hours at $17, the rate variance was $1,200 unfavorable.

• True

• False