Question : 80.In the United States, insider trading considered a. neither unethical nor illegal. b. : 1244277

80.In the United States, insider trading is considered

 

a.

neither unethical nor illegal.

b.

both unethical and illegal.

c.

unethical, but not illegal.

d.

illegal, but not unethical.

 

 

 

81.Which of the following statements is true about investments categorized as trading securities?

 

a.

Changes in market value are reflected in net income

b.

They are purchased to be held to maturity

c.

They can consist of debt, but not equity, securities

d.

They are valued on the balance sheet at cost

 

 

 

82.Held-to-maturity securities are valued on the balance sheet at

 

a.

lower of cost or market.

b.

market value.

c.

cost.

d.

cost, adjusted for the effects of interest.

 

 

 

83.Stock categorized as trading securities is purchased for $72,000. At year end, when the market value of the stock is $63,000, the adjusting entry includes a

 

a.

credit to Allowance to Adjust Short-Term Investments to Market.

b.

debit to Realized Loss on Investments.

c.

credit to Unrealized Loss on Investments.

d.

credit to Short-Term Investments.

 

 

 

84.Trading securities are valued on the balance sheet at

 

a.

lower of cost or market.

b.

market value.

c.

cost.

d.

cost, adjusted for the effects of interest.

 

 

 

 

 

85.The year-end adjusting entry to reflect an increase in the value of trading securities includes a

 

a.

credit to Realized Gain on Investments.

b.

debit to Short-Term Investments.

c.

debit to Allowance to Adjust Short-Term Investments to Market.

d.

debit to Unrealized Gain on Investments.

 

 

 

86.Unrealized gains and losses on trading securities will appear

 

a.

on the balance sheet, as a contra-asset account.

b.

on the balance sheet, within stockholders’ equity.

c.

on the income statement.

d.

on no financial statement.

 

 

 

87.A gain or loss on an investment is considered unrealized when

 

a.

the gain or loss appears on no financial statement.

b.

the investment has not yet been sold.

c.

there is no tax on the gain or loss.

d.

the gain or loss is not entered into the accounting records.

 

 

 

88.The account Allowance to Adjust Short-Term Investments to Market will appear

 

a.

on no financial statement.

b.

on the income statement.

c.

on the balance sheet as a contra-asset account.

d.

on the balance sheet within stockholders’ equity.

 

 

 

89.All of the following are ways one corporation could affect the operating and financial policies of another corporation except

 

a.

representation on the board of directors.

b.

analysis of data regarding profitability.

c.

exchange of managerial personnel.

d.

material transactions between the companies.

 

 

 

 

 

 

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