Securities are ________.commonly traded on an exchange B.assets traded between companies working in the same industry C.intangible assets traded in…

A. commonly traded on an exchange

B. assets traded between companies working in the same industry

C. intangible assets traded in the stock exchange

D. always considered to be long-term investments

A. preferred stocks

B. real estate

C. common stocks

D. corporate bonds

A. further enhance a business relationship with a key vendor

B. invest borrowed money in an effort to improve the company’s net income

C. to weaken the investing company’s supply chain source

D. to allow the company to use investment income to increase its annual dividend

A. equity remains unchanged

B. current assets increase

C. liabilities increase

D. total assets increase

A. a debit to Cash and a credit to Long-term Investments — Held-to-Maturity

B. a debit to Long-term Investments — Held-to-Maturity and a credit to Cash

C. a debit to the Interest Revenue and a credit to Cash

D. a debit to Cash and a credit to Interest Revenue

A. The receipt of interest revenue is recorded with a debit to Interest Revenue and a credit to Cash.

B. Investments in debt securities are recorded at cost, including any brokerage fees paid.

C. The receipt of interest revenue is recorded with a debit to Cash and a credit to Long-term Securities—Held-to-Maturity.

D. Debt securities disposed of at maturity are recorded with a debit to the Short-term or Long-term Investments account and a credit to Cash.

A. Debt securities represent stock ownership in a company whereas equity securities represent a credit relationship with the company.

B. Equity securities earn dividend revenue whereas debt securities earn interest revenue.

C. Neither debt securities nor equity securities mature at a stated date.

D. Both debt securities and equity securities pay interest.

A. equity method

B. acquisition method

C. consolidation method

D. discounted cash flow method

A. a debit to revenue from investments

B. dividend revenue

C. a return of capital

D. a credit to current assets

A. They are held for more than two years.

B. They are generally recorded as long-term investments.

C. They must be adjusted and reported at fair value at the end of each accounting period.

D. They are always reported on the balance sheet at their historical cost.

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