Concept – Equity Method for an Investment
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
How should be the cash dividends received by investor, from the investee recorded?
How should be the cash dividends received by investor, from the investee recorded?
Given the values, what was the dividend’s effect?
Identify which option is NOT an example of a use of special purpose funds.
Held-to-maturity securities can be reported as current or long-term on a classified balance sheet, based on their maturity dates.
Debt securities investments without readily determinable fair values are reported at historical cost.
Trading securities can include both debt and equity securities.
Trading securities report net unrealized holding gains (losses) in the income statement.
In a statement of cash flows, transactions involving the purchase and sale of securities are always categorized as investing activities.
Transfers of debt investments between trading, available-for-sale, and held-to-maturity portfolios, which are part of regular operations, are not required to be disclosed in the financial statements.
Trading securities and available-for-sale securities are reported on the balance sheet at their fair values.