Acc306_Quiz

1. Question : The shareholders' equity section of the balance sheet reflects changes in the fair value of securities for which type of securities' Securities available for sale. 2. Question : If the fair value of equity securities is not determinable and the equity method is not appropriate, the securities should be reported at: Cost. 3. Question : Current liabilities are normally recorded at the amount expected to be paid rather than at their present value. This practice can be supported by GAAP according to the concept of: Materiality. 4. Question : Which of the following situations would not require that long-term liabilities be reported as current liabilities on a classified balance sheet' All of the above require the current classification. 5. Question : Which of the following may create employer liabilities in connection with their payrolls' all the above are correction 6. Question : When a product or service is delivered for which a customer advance has been previously received, the appropriate journal entry includes: A debit to a liability and a credit to a revenue account. 7. Question : Which of the following investment securities held by Zoogle Inc. may be classified as held-to-maturity securities in its balance sheet' Long-term debenture bonds 8. Question : When a gain contingency is probable and the amount of gain can be reasonably estimated, the gain should be: Disclosed, but not recognized in the income statement. 9. Question : A contingent loss should be reported in a footnote to the financial statements rather than being accrued if: The incurrence of a loss is reasonably possible. 10. Question : Which of the following investment securities held by Zoogle Inc. are not reported at fair value in its balance sheet' Debt securities held to maturity