Which of the following is not true regarding investments in securities available-for-sale?
a. Firms initially record investments in securities available-for-sale at acquisition cost, including transaction costs.
b. If a firm classifies debt securities as available-for-sale, it must amortize any difference between the purchase price and the maturity value of the debt over the remaining term to maturity.
c. The amortization of any difference between the purchase price and the maturity value of the debt makes interest revenue on these debt securities differ from the cash receipts for debt service payments.
d. On the date of each balance sheet, firms measure securities classified as available-for-sale at fair value.
e. The difference between amortized cost for debt securities or the carrying value for equity securities and the fair value of these securities is a realized holding gain or loss.
E
You might also like to view...
Which of the following represents the lowest level of manager support for training?
A. participation in training themselves B. allowing trainees to practice their skills C. encouragement of trainees' participation in training D. serving as a trainer
In response to the release of the movie Blood Diamond, the World Diamond Council created a Web site to ________
A) provide information about Nelson Mandela's involvement in the diamond industry B) address concerns about the glut of poor quality diamonds on the market C) explain the difference between blood diamonds and conflict diamonds D) assert that the majority of diamonds on the market were not conflict diamonds E) advocate consumers boycott the film due to its inaccurate depiction of the diamond industry
The wage level below which an employee declines a job offer is known as a:
A. market wage level B. reservation wage level C. competitive wage level D. prevailing wage level E. living wage level
In the context of human compromises in decision making, which of the following statements is true of bounded rationality?
A. It occurs when a decision maker relies on his or her intuition and gut instincts while analyzing alternatives instead of collecting impartial data. B. It occurs when a decision maker assumes that everyone around sees things the way he or she does. C. It occurs when a decision maker tends to select an alternative that he or she has tried before and that has delivered acceptable results. D. It occurs when a decision maker settles for an alternative that he or she considers good enough because other limitations make finding the best alternative impossible.