Quiz 12.139 – Terms and Phrases
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
Match each phrase with its corresponding terminology to indicate the way the investments should be accounted for under U.S. GAAP.
Match each phrase with its corresponding terminology to indicate the way the investments should be accounted for under U.S. GAAP.
Match each phrase with its corresponding terminology, change from the equity method, unrealized holding losses, etc…
Match each phrase with its corresponding terminology, securities held-to-maturity, unrealized holding gains and losses, etc…
Match each phrase with its corresponding terminology, investor’s share of investee income, additional depreciation, etc…
Under the equity method, goodwill amortization reduces both investment income and account.
The fair value option for available-for-sale investments results in their reclassification as trading securities.
Investments accounted for using the equity method cannot be designated as fair value through profit or loss (FVTPL) as they represent significant-influence investments.
The portion of the premium paid that corresponds to the additional year the insured person remains alive reduces the cash surrender value of a life insurance policy every year.
What is the investment category where fair values and subsequent growth of an investee are not significant for reporting?
What type of securities are shown on the balance sheet using the amortized cost method?