Equity securities can be classified as either current assets or long-term assets. Regardless of its classification, equity securities are always revalued to fair value at the end of the period. (True/False)
Equity securities can be classified as either current assets or long-term assets. Regardless of its classification, equity securities are always revalued to fair value at the end of the period. (True/False)
Debt securities which are classified as held-to-maturity securities are valued at amortized costs. Amortized costs is synonymous with carrying value and book value. (True/False)
ABC Company owns 60% of the stock of XYZ Company and prepares consolidated financial statements. The rationale for preparing consolidated financial statements is the economic entity assumption and comparability. (True/False)
XYZ Corporation declares and distributes a cash dividend that is a result of current earnings. Under both the fair value and equity method, the receipt of these dividends will be recorded as dividend revenue by the investor. (True/False)
The Fair Value Adjustment account has a normal debit balance. (True/False)
Cash dividends paid to preferred shareholders will always have an effective on basic earnings per share. (True/False)
Convertible bonds and convertible
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