8.8 Account for other long-term assets
1) Real estate for resale or investments in equity securities held for less than one year would be considered other long-term assets.
2) Investments in debt securities, such as bonds, are typically classified as "other long-term assets."
3) Increases in the value of a security while the company still owns it are considered realized gains.
4) Realized gains and losses only occur when the security is sold for more or less than the original cost.
5) Which of the following is NOT a classification for marketable securities?
A) Saleable securities
B) Available-for-sale securities
C) Trading securities
D) Held-to-maturity securities
E) Trading securities and available-for-sale securities
6) Interest and dividends earned during the period are reported on the income statement for which kind of marketable securities?
A) Trading securities
B) Available-for-sale securities
C) Held-to-maturity securities
D) All types of securities show interest and dividend income on the income statement.
E) Trading securities and available-for-sale securities
7) Marketable securities that are managed and held until the due date of the securities are:
A) trading securities.
B) available-for sale securities.
C) held-to-maturity securities.
D) trading and held-to-maturity securities.
E) trading securities and available-for sale securities
8) Which type of marketable securities do not report increases or decreases in value on the income statement?
A) Trading and available-for-sale securities
B) Available-for-sale securities
C) Held-to-maturity securities
D) Held-to-maturity and available-for-sale securities
E) Trading and held-to-maturity securities
9) What are securities that are actively managed in order to maximize profit as a result of short-term changes in price?
10) For which type of security are any increases or decreases in value reported as a separate change in shareholders' equity for the period?
11) For which kind of marketable securities are any unrealized gains and losses shown on the income
statement?
12) What type of marketable securities are reported at market value on the balance sheet date?
13) What type of marketable securities are reported at cost on the balance sheet date?