Exam (elaborations)
INTERMEDIATE ACCOUNTING 2 EXAM #1 QUESTIONS AND ANSWERS
- Course
- Institution
INTERMEDIATE ACCOUNTING 2 EXAM #1 QUESTIONS AND ANSWERS
[Show more]
Content preview
INTERMEDIATE ACCOUNTING 2 EXAM#1 QUESTIONS AND ANSWERS
Held to Maturity = - Answer-Debt securities that the enterprise has the positive intent
and ability to hold to maturity.
Trading Securities = - Answer-investments in debt or equity securities acquired
principally for the purpose of selling them in the near term.
Avail for sale securities = - Answer-Debt Securities not classified as held to maturity, or
trading securities.
Equity Method = - Answer-reporting method using the investment cost adjusted for
subsequence earnings and dividends for investee.
Consolidate - Answer-Method of reporting in which the financial statements of the
investor and investee are combined as if they are a single company.
Effective Rate = - Answer-Recording interest each period as the effective market rate of
interest multiplied by the outstanding balance of debt(during the interest period).
Present Value = - Answer-The present value of a single amount is today's equivalent to
a particular amount in the future.
Zero-Coupon Bonds = - Answer-a debt security that doesn't pay interest, but is traded at
a deep interest, rendering profit at maturity when the bond is redeemed for its full face
value. Investors receive no periodic cash interests, even though annual interest is
revenue is reported for tax purposes.
Stated Rate = - Answer-Interest rate stated on the face of the bond.
Premium = - Answer-Sell for more than face value
Discount = - Answer-Sell for less than face value
Par value = - Answer-The normal value of a bond
Installment Note = - Answer-Notes payable for which equal installment payments
include both an amount that represents interest and an amount that represents a
reduction of the outstanding balance so that at maturity the note is completely paid.
Carrying value of a Bond = - Answer-par/face value of a bond plus any unamortized
premiums or less any unamortized discounts. reported on the balance sheet.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller biggdreamer. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
76449 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now
