MULTIPLE CHOICE
1. A contingent loss should be reported in a footnote to the financial statements rather than being accrued if: (Points : 1)
2. Which of the following investment securities held by Zoogle Inc. may be classified as held-to-maturity securities in its balance sheet? (Points : 1)
3. Large, highly rated firms sometimes sell commercial paper: (Points : 1)
4. Which of the following increases the investment account under the equity method of accounting? (Points : 1)
5. When the equity method of accounting for investments is used by the investor, the investment account is increased when: (Points : 1)
6. Which of the following is a contingency that would most likely require accrual? (Points : 1)
7. When a product or service is delivered for which a customer advance has been previously received, the appropriate journal entry includes: (Points : 1)
8. Other things being equal, most managers would prefer to report liabilities as noncurrent rather than current. The logic behind this preference is that the long-term classification permits the company to report: (Points : 1)
9. The key accounting considerations relating to accounts payable are: (Points : 1)
10. The investment category for which the investor's "positive intent and ability to hold" is important is: (Points : 1)
Click here for the solution: 1. A contingent loss should be reported in a footnote to the financial statements rather than being accrued if: (Points : 1)
