Question : 99.A company had net income of $40,000, net sales of : 1236475

99.A company had net income of $40,000, net sales of $300,000, and average total assets of $200,000. Its profit margin and total asset turnover were respectively:   

A.13.3%; 0.2.

B.13.3%; 1.5.

C.2.0%; 1.5.

D.1.5%; 0.2.

E.1.5%; 13.3.

100.Investments can be classified as all but which of the following?    

A.Intangible investments.

B.Held-to-maturity debt securities.

C.Available-for-sale debt securities.

D.Available-for-sale equity securities.

E.Trading securities.

101.Investments in debt and equity securities that the company actively manages and trades for profit are referred to as short-term investments in:   

A.Available-for-sale securities.

B.Held-to-maturity securities.

C.Trading securities.

D.Realizable securities.

E.Liquid securities.

102.Investments in trading securities:   

A.Include only equity securities.

B.Are reported as current assets.

C.Include only debt securities.

D.Are reported at their cost, no matter what their market value.

E.Are long-term investments.

103.A decrease in the fair value of a security that has not yet been realized through an actual sale of the security is called a(n):   

A.Contingent loss.

B.Realizable loss.

C.Unrealized loss.

D.Capitalized loss.

E.Market loss.

104.Held-to-maturity securities are:   

A.Always classified as Short-Term Investments.

B.Always classified as Long-Term Investments.

C.Debt securities that a company intends and is able to hold to maturity.

D.Equity securities that a company intends and is able to hold to maturity.

E.Equity securities where significant influence involved.

105.Available-for-sale debt securities are:   

A.Recorded at cost and remain at cost over the life of the investment.

B.Reported at historical cost, adjusted for the amortized amount of any difference between cost and maturity value.

C.Reported at fair value on the balance sheet.

D.Intended to be held to maturity.

E.Always classified as Long-Term Investments.

106.All of the following are true for Available-for-sale equity securities except:   

A.Are recorded at cost when acquired.

B.May earn dividends that are reported in that year’s income statement.

C.May be classified as either short-term or long-term securities.

D.Are reported at market value on the balance sheet.

E.Are actively managed like Trading Securities.

107.J.P. Industries purchased 2,000 shares of Yang’s common stock for $143,000 as a long-term investment. The investment is classified as available-for-sale securities. The par value of the stock was $1 per share. J.P. paid $375 in commissions on the transaction. J.P.’s entry to record the purchase transaction would include a:   

A.Credit to Common Stock for $2,000.

B.Credit to Common Stock for $143,000.

C.Credit to Common Stock for $143,375.

D.Debit to Long-Term Investments-AFS for $143,000.

E.Debit to Long-Term Investments-AFS for $143,375.

108.Lessington Corporation purchases 4,000 shares of Gonzalez Company common stock for $150,000 as a long-term investment. The investment is classified as available-for-sale securities. Gonzalez has 500,000 shares of stock currently outstanding and the par value of the stock is $1 per share. Lessington’s entry to record the purchase transaction would include a:   

A.Debit to Long-Term Investments-AFS for $150,000.

B.Credit to Common Stock for $150,000.

C.Credit Gain on Long-Term Investment $146,000.

D.Debit to Long-Term Investments-AFS for $4,000.

E.Credit to Common Stock for $4,000.