Please i need all questions to be answered. 6. Unrealized holding gains and losses for trading securities are:a) Reported as a separate com ponent of the shareholder's equity section of thebalance sheet, i.e., other comprehensive incomeb) Included in the determination of income from operations in the period of thechangec) Reported as extraordinary itemsd) Not reported in the income statement nor the balance sheet7. Level Company owns bonds of Leader Com pany classified as held to maturity. During2016, the fair value of those bonds increased by $4million. Interest was received for$3 million. What effect did the investment have on Level's 2016 financial statements:a) Total assets increased by $7 millionb) Total assets increased by $3 millionc) Net income increased by $7 milliond) Shareholder's equity increased by $4 million8. In the statement of cash flow, inflows and outflows of cash from buying and sellingtrading securities typically are considered:a) Investing activitiesb) Operating activitiesc) Financing activitiesd) Noncash financing activities9. Felix Ltd. uses the percentage-of-com pletion method to account for work performedon its contracts with a price of $3,000,000. Costs to date and total estim ated coststo com plete during the year were $1,000,000 and 1,750,000. How much gross profitshould Felix recognize in the year:a) 1,714,285.71b) 1,714,285.74c) 714,285.71d) 714,285.74e) None of the above10. Unrealized holding gains and losses on debt securities classified as available for salewould have the following effects on accum ulated other comprehensive income:a) Gains: Increase, Losses: Increaseb) Gains: Decrease, Losses: Decreasec) Gains: Decrease, Losses: Increased) Gains: Increase, Losses: Decrease

A security is a financial instrument, generally any financial asset that can be traded.…

Unrealized holding gains and losses for trading securities are: a) Reported as a separate com ponent of the shareholder's equity section of the balance sheet, i.e., other comprehensive income b) Included in the determination of income from operations in the period of the change c) Reported as extraordinary items d) Not reported in the income statement nor the balance sheet

Unrealized holding gains and losses for trading securities are: a) Reported as a separate com ponent of the shareholder's equity section of the balance sheet, i.e., other comprehensive income b) Included in the determination of income from operations in the period of the change c) Reported as extraordinary items d) Not reported in the income statement nor the balance sheet

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments

Section: Chapter Questions

Problem 28RQSC

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When holding held-to-maturity securities, a company should disclose at each balance sheet date the aggregate fair value of the securities. the gross unrecognized holding gains and losses. the amortized cost of the securities. all of these choices. 2. When holding available-for-sale securities, a company should disclose for each income statement period gross realized gains and losses as a separate component of other comprehensive income. unrealized gains and losses included in net income. proceeds from sales and the gross realized gains and losses on those sales. none of these choices.
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1) 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) 2) 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) 3) 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) 4) 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) 5) The Fair Value Adjustment account has a normal debit balance. (True/False) 6) Cash dividends paid to preferred shareholders will…
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