Accounting for marketable securities Fill-in-the-blanks quiz
Directions!
Read the whole text carefully and think the correct word that should fill in the blank space(s) and then confirm your answer by pressing the 'see answer' button. Don't press the 'see answer' button before reading the question text.
If you are unable to solve these fill-in-the-blank questions, read "accounting for marketable securities" chapter from explanations section of our website.
Question: 1
securities are highly liquid securities such as stocks, short-term bonds, commercial papers and treasury bills.
Question: 2
Marketable securities are mostly classified as
securities.
Question: 3
In balance sheet, marketable securiteis are listed immediately after
.
Question: 4
When marketable securities are purchased for cash,
account is debited and
account is credited.
Question: 5
A company purchases 1,000 shares of another company for short-term investment at the rate of $10 per share on December 1, 2015. It also pays a brokerage commission of $100 for the purchase of these shares. The marketable securities account would be debited by
.
Question: 6
The purchase of marketable securities for cash is reported under
activities section of statement of cash flows.
Question: 7
According to US-GAAP, cash received as interest and dividend income is classified as
cash flow.
Question: 8
Under
, a company can classify dividend and interest cash inflow as operating, investing or financing cash flow.
Question: 9
Marketable securities are examples of
assets.
Question: 10
According to mark-to-market principle, an item is shown in the balance sheet at its
value.
Question: 11
Marketable securities are shown in the balance sheet using
principle.
Question: 12
If marketable securities are sold for a price that is higher than their cost, the difference represents a
on sale of marketable securities.
Question: 13
If marketable securities are sold for a price that is lower than their cost, the difference represents a
on sale of marketable securities.
Question: 14
The inflow of cash resulting from sale of marketable securities is classified as
cash flow.
Question: 15
Marketable securities are highly liquid investments and are shown in the balance sheet at their
value.
Question: 16
The gain or loss on sale of marketable securities is reported in
section of income statement.
Question: 17
Unrealized holding
occurs when market value of marketable securities is higher than their cost.
Question: 18
Unrealized holding
occurs when market value of marketable securities is lower than their cost.
Question: 19
When balance sheet is prepared, the unrealized holding gain is added to
.
Question: 20
When balance sheet is prepared, the unrealized holding
is deducted from stockholders' equity.
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