Busy. Please wait.
or

show password
Forgot Password?

Don't have an account?  Sign up 
or

Username is available taken
show password

why


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account.
We do not share your email address with others. It is only used to allow you to reset your password. For details read our Privacy Policy and Terms of Service.


Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
Don't know
Know
remaining cards
Save
0:01
To flip the current card, click it or press the Spacebar key.  To move the current card to one of the three colored boxes, click on the box.  You may also press the UP ARROW key to move the card to the "Know" box, the DOWN ARROW key to move the card to the "Don't know" box, or the RIGHT ARROW key to move the card to the Remaining box.  You may also click on the card displayed in any of the three boxes to bring that card back to the center.

Pass complete!

"Know" box contains:
Time elapsed:
Retries:
restart all cards
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

Int. Acc. II Ch12

Intermediate Accounting, Spiceland 4e

QuestionAnswer
Both fair values and subsequent growth of the investee are irrelevant for investments in which of the following categories? Held-to-maturity securities.
Investments in securities available for sale are reported at Fair value on the reporting date
All investment securities are initially recorded at: Cost
Holding gains and losses on trading securities are included in earnings because They measure the success or failure of taking advantage of short-term price changes
When an equity method investment is sold, a gain or loss is recognized for the difference between its selling price and its cost. False
The income statement reports changes in fair value for which type of securities? Trading securities
Fair value is used as the basis for valuation of a firm's investment securities when: The investment security is not classified as held-to-maturity
Holding gains and losses on trading securities are included in ______. earnings
Unrecognized holding gains and losses for securities available-for-sale are: Reported as a separate component of the shareholders' equity section of the balance sheet.
When applying the equity method, an investor should report dividends from the investee as: A reduction in the investment account
On January 12, Henderson Corporation purchased 4 million shares of Honeycutt Corporation common stock for $73 million and classified the securities as available-for-sale. At the close of the same year, the fair value of the securities is $81 million. Hend An increase in shareholders' equity of $8 million
Evans Company owns 4.5 million shares of stock of Frazier Company classified as available-for-sale. During 2006, the fair value of those shares increased by $9 million. What effect did this increase have on Evans' 2006 financial statements? Net assets increased.
Western Manufacturing Company owns 40% of the outstanding common stock of Eastern Supply Company. During 2006, Western received a $50 million cash dividend from Eastern. What effect did this dividend have on Western's 2006 financial statements? The investment account decreased
The equity method is used when an investor can't control, but can exercise significant influence over the operating and financial policies of the investee. We presume, in the absence of evidence to the contrary, that this is so if: The investor owns between 20% and 50% of the investee's voting shares
The shareholders' equity section of the balance sheet reflects changes in the fair value of securities for which type of securities? Securities available for sale
The rules of FASB Statement No. 115, "Accounting for Certain Debt and Equity Securities," generally apply when the percentage of ownership of another company is: Less than 20%
Created by: FutureCPA