ACC 305 Strayer All Quizzes Midterm and Final Exams Strayer Latest
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ACC 305 Strayer Test Bank
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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.
c.the security must be a debt security.
d.All of these are required.
31.Held-to-maturity securities are