Accounting for marketable securities
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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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