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Flashcards in Deck17 Deck (17):
1

Investments in "Available for Sale" securities are valued at market price under what method?

Fair Value Method

2

On Available for Sale securities, "Unrealized" Changes(Gain/Loss) are recorded where?

Owner's Equity

3

For an investor's Security to be considered "Held to Maturity" it must have

1. Positive Intent and 2. Ability to hold the securities until Maturity

4

How are investments NOT held to security valued?

Fair Value (Whatever the market rate is)

5

The market price of a bond is :

The present value of all remaining payments(principle and interest) at the effective(market) interest rate.

6

A term bond matures on:

A single date

7

When do serial bonds mature?

According to a schedule

8

If a bond is issued at 97 plus accrued interest what does that mean?

It's issued at 97% of its face value. So a $1000 bond would be issued for $970.

9

When debt is issued at a discount, the interest expense equals the Cash Paid + ?

Plus Discount

10

For Bonds, Interest is defined as:

The True Yield Rate x the Debt balance at the beginning of the interest Period.

11

Are the purchase of Cash Equivalents reported in the Statement of Cash Flows?

No, because the purchase of a Cash Equivalent makes the Cash Inflow go down by the same as the Cash Outflow

12

What is a difference between Managerial Accounting and Financial Accounting?

Managerial doesn't have to follow GAAP, while Financial does.

13

Which method is LEAST likely to be used to report an investment in a corporate Joint Venture? Equity Method or Fair Value method

Fair Value

14

When using LCM for Inventory, which results in the least inventory amount ($)? By Total Inventory, By Groups, or By Separate Items

Separate Items - In no case will market exceed cost

15

Which valuation method would NOT be used to value Inventory?

Present Value of Future Cash Flows

16

For a Company's 10-Q's, what does it have to file along with last month's Balance Sheet?

Balance Sheet from the fiscal Year before.

17

Payment of Dividends are a ____________ activity.

Financing