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FA Chapter 8 quiz

meli ssa 11 questions 5.0 (1 rating)

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Questions in this quiz (11)

  1. 1Global’s Balance Sheet should reportImage for question 1
    1. A. investments of $110,850.
    2. Bunrealized loss of $19,750.
    3. Cinvestments of $91,100
    4. Ddividend revenue of $3,290
  2. 2Global’s Income Statement should reportImage for question 2
    1. Again on sale of investment of $19,900.
    2. B. unrealized gain of $19,900.
    3. Cdividend revenue of $3,290
    4. Dinvestments of $89,050.
  3. 3. Dividends received on an equity-method investment
    1. Aincrease the investment account
    2. Bincrease dividend revenue.
    3. Cdecrease the investment account.
    4. Dincrease owners’ equity
  4. 4The starting point in accounting for all investments is
    1. Aequity value.
    2. Bcost.
    3. Cc. market value on the Balance-Sheet date.
    4. Dcost minus dividends.
  5. 5Consolidation accounting
    1. Acombines the accounts of the parent company and those of the subsidiary companies.
    2. Beliminates all liabilities
    3. Creports the receivables and payables of the parent company only
    4. Dall of the above.
  6. 6On January 1, 20X0, Maxspace, Inc., purchased $100,000 face value of the 5% bonds
    of Mail Frontier, Inc., at 107. The bonds mature on January 1, 20X5. For the year ended
    December 31, 20X5, Maxspace received cash interest of
    1. A. $2,000
    2. B$3,000.
    3. C$4,000
    4. D$5,000
  7. 7Return to Maxspace, Inc.’s bond investment in the preceding question. For the year
    ended December 31, 20X3, Maxspace received cash interest of $5,000. What was the interest
    revenue that Maxspace earned in this period?
    1. A$5,000
    2. B$3,600
    3. C$7,000
    4. D$2,000
  8. 8Providence Systems purchased inventory on account from Megasonic. The price was
    ¥80,000, and a yen was quoted at $0.0088. Providence paid the debt in yen a month later, when
    the price of a yen was $0.0093. Providence
    1. Adebited Inventory for $744
    2. Brecorded a Foreign Currency Transaction Gain of $40.
    3. C. debited Inventory for $704.
    4. Dnone of the above.
  9. 9One way to prevent a foreign currency transaction loss is to
    1. A. offset foreign currency inventory and PPE.
    2. Bpay debts as late as possible.
    3. Cpay in the foreign currency.
    4. Dcollect in your currency.
  10. 10Foreign currency transaction gains and losses are reported on the
    1. A. consolidation worksheet.
    2. BIncome Statement.
    3. Cstatement of cash flows
    4. D. Balance Sheet.

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Description
Quiz on FA Chapter 8 quiz, created by meli ssa on 19/02/2019.
Author
meli ssa
Language
English
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