ACC 305 Strayer All Quizzes Midterm and Final Exams Strayer Latest

6965 WordsApr 27, 201528 Pages
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b.trading debt securities. c.available-for-sale debt securities. d.never-sell debt securities. S28.Use of the effective-interest method in amortizing bond premiums and discounts results in a.a greater amount of interest income over the life of the bond issue than wouldresult from use of the straight-line method. b.a varying amount being recorded as interest income from period to period. c. a variable rate of return on the book value of the investment. d. a smaller amount of interest income over the life of the bond issue than wouldresult from use of the straight-line method. S29.Equity securities acquired by a corporation which are accounted for by recognizing unrealizedholding gains or losses as other comprehensive income and as a separate component ofstockholders' equity are a.available-for-sale securities where a company has holdings of less than 20%. b.trading securities where a company has holdings of less than 20%. csecurities where a company has holdings of between 20% and 50%. d.securities where a company has holdings of more than 50%. 30.A requirement for a security to be classified as held-to-maturity is a.ability to hold the security to maturity. b.positive intent. c.the security must be a debt security. d.All of these are required. 31.Held-to-maturity securities are

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