91. Investments in trading securities: A. Include only equity securities. B. Are reported as current assets. C. Include only debt securities. D. Are reported at their cost, no matter what...

91. Investments in trading securities:

A. Include only equity securities.

B. Are reported as current assets.

C. Include only debt securities.

D. Are reported at their cost, no matter what their market value.

E. Are long-term investments.

92. A decrease in the fair market value of a security that has not yet been realized through an actual sale of the security is called a(n):

A. Contingent loss

B. Realizable loss

C. Unrealized loss

D. Capitalized loss

E. Market loss

93. Investments in debt and equity securities that the company actively manages and trades for profit are referred to as short-term investments in:

A. Available-for-sale securities.

B. Held-to-maturity securities.

C. Trading securities.

D. Realizable securities.

E. Liquid securities.

94. Held-to-maturity securities are:

A. Always classified as long-term liabilities.

B. Part of equity.

C. Debt securities that a company intends and is able to hold to maturity.

D. Equity securities that a company intends and is able to hold to maturity.

E. Equity securities that have a maturity value greater than cost.

95. Available-for-sale debt securities are:

A. Recorded at cost and remain at cost over the life of the investment.

B. Reported at historical cost, adjusted for the amortized amount of any difference between cost and maturity value.

C. Reported at market value on the balance sheet.

D. Intended to be held to maturity.

E. Always classified with Long-Term Liabilities.

96. Morgan Company purchased 2,000 shares of Asta's common stock for $143,000 as a long-term investment and is considered available-for-sale. The par value of the stock was $1 per share. Morgan paid $375 in commissions on the transaction. The entry to record the transaction would include a:

A. Credit to Common Stock for $2,000.

B. Credit to Common Stock for $143,000.

C. Credit to Common Stock for $143,375.

D. Debit to Long-Term Investments for $143,000.

E. Debit to Long-Term Investments for $143,375.

97. Six months ago, a company purchased an investment in stock for $65,000. This investment is considered available-for-sale. The current market value of the stock is $68,500. The company should record a:

A. Debit to Unrealized Loss-Equity for $3,500.

B. Credit to Unrealized Gain-Equity for $3,500.

C. Debit to Investment Revenue for $3,500.

D. Credit to Market Adjustment - Available-for-Sale for $3,500.

E. Credit to Investment Revenue for $3,500.

98. Micron owns 3,000 shares of JVT. JVT has 25,000 total shares of stock outstanding. JVT paid $3 per share in cash dividends to its stockholders. Micron should record a:

A. Debit to Dividends for $75,000.

B. Debit to Dividends for $9,000.

C. Debit to Cash for $9,000.

D. Debit to Long-Term Investments for $9,000.

E. Credit to Long-Term Investments for $9,000.

99. Acme owns 4,000 shares of XYZ. XYZ has 50,000 total shares of stock outstanding. XYZ paid $0.82 per share in cash dividends to its stockholders. Acme should record a:

A. Debit to Dividends for $41,000.

B. Debit to Dividends for $3,280.

C. Debit to Cash for $3,280.

D. Debit to Long-Term Investments for $3,280.

E. Credit to Long-Term Investments for $3,280.

100. A company had investments in long-term available-for-sale securities. At the end of the current year, the company's portfolio had a $162,000 cost and $164,000 market value.

What is the current year's adjustment to market value given the following account balances at the end of the prior year?

A.

B.

C.

D.

E.