Answer the following statements true (T) or false (F)
1. If a long-term investment in an equity security gives the investor significant influence over
the investee, the investment is classified as available-for-sale.
2. Long-term investments in debt securities not classified as trading or held-to-maturity
securities are classified as available-for-sale securities.
3. Management's intent determines whether an available-for-sale security is classified as long-term or short-term.
4. Unrealized Loss—Equity and Unrealized Gain—Equity are permanent equity accounts.
5. Both U.S. GAAP and IFRS permit companies to use fair value in reporting available-for-sale
and held-to-maturity securities.
1. FALSE
2. TRUE
3. TRUE
4. TRUE
5. TRUE
You might also like to view...
The determination of cost behavior is called a cost prediction.
Answer the following statement true (T) or false (F)
To people unfamiliar with statistics, “correlation” most likely is used a synonym for…
a. linear relationship b. relationship c. curvilinear relationship d. none of the above
What should competitors establish when collaborating on a project that might have mutual gain?
A) Stock options B) A new Board of Directors C) A strategic alliance D) Institutional investors E) A spin-off
Gifts of appreciated depreciable property may trigger recapture of depreciation of cost-recovery deductions to the donor as of the date of gift.
Answer the following statement true (T) or false (F)