All of the following statements regarding stock investments with insignificant influence are true except for:
A. They are adjusted to fair value at the end of each period.
B. They report any unrealized gain (or loss) in the income statement.
C. They report realized gain (or loss) in a permanent asset account, Fair Value Adjustment-Stock.
D. They are recorded at cost when acquired.
E. They are valued at fair value.
Answer: C
You might also like to view...
The statement of cash flows provides information about
a. the cumulative effects of operations over several years. b. the balances in shareholders' equity accounts. c. the relationship between operations and liquidity of a firm. d. the success of management's cash management strategy. e. all of the above.
What is the Internal Rate of Return (IRR) for the cash flows provided in the table below?
Note: The negative cash flow for year 0 is the initial investment for the project. The required rate of return is 8%. Year Cash Flow 0 -$100,000 1 $45,000 2 $45,000 3 $45,000 A) 8.00% B) 9.70% C) 12.41% D) 16.65%
TP sells franchises in the Old Fast Food chain. TP sells a franchise to Choi for $100,000 by cashier's check. Choi then hears that TP is going out of business and tries to stop payment on the check. TP has already transferred the money to a third party who meets the UCC's requirements for a holder in due course. The bank paid that third party. TP declares it is out of business. In a subsequent
lawsuit: a. the court will find that the third party is a holder in due course and, despite the fact that TP has defraudedChoi, not require the third party to repay Choi b. because of the fraud involved, the court will require the third party repay Choi c. because the instrument involved was a cashier's check and not an ordinary check, the court will not require the third party to repay Choi d. because the amount in controversy was more than $50,000, the courts will be empowered to view the fraud as a felony and will ignore the requirements of the UCC e. none of the other choices
Information systems security is the process of preventing unauthorized access to an IS or modification of its data
Indicate whether the statement is true or false