FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 25: Investments and International Operations

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

Multiple Choice

Review LaterAdd Note

Review Later

A company had net income of $2,660,000, net sales of $25,000,000 and average total assets of $8,000,000. Its return on total assets is equal to:

A) 3.01%
B) 10.64%
C) 32.00%
D) 33.25%
E) 300.75%

F) All of the above
G) C) and D)

Correct Answer

verified

Show Answer

Question 32

Multiple Choice

Review LaterAdd Note

Review Later

Return on total assets measures a company's ability to:

A) Produce net income from net sales
B) Produce sales from net assets
C) Produce net income from net assets
D) Increase its asset base from sales
E) Increase its asset base from net income

F) None of the above
G) C) and D)

Correct Answer

verified

Show Answer

Question 33

Essay

Review LaterAdd Note

Columbia Corp. held 1,500 of Vianco common stock with a cost of $74,387. These shares were classified as a long-term available-for-sale investment. It sold the shares on December 13 for $55,275. Prepare the journal entry to record this sale.

Any cash dividends received from equity securities are recorded as Dividend Expense.

Short-term investments:

Investments in trading securities are always classified as ______________ and are reported as _______________ on the balance sheet.

Long-term investments include investments in land or other assets not used in a company's operations.

The equity method with consolidation is used in accounting for long-term investments in equity securities with controlling influence.

A U.S. company makes a sale to a foreign customer payable in 30 days in the customer's currency. The sale would be recorded by the U.S. company on the date:

On April 1 of the current year, a company paid $150,000 to purchase 7%, 10-year bonds that had a par value of $150,000 and paid interest semiannually on October 1 and April 1. The company intends to hold the bonds until they mature. Prepare the journal entry to recognize accrued interest as of December 31 of the current year.

Short-term investments are readily convertible to cash that are intended to be converted into cash within one year or the operating cycle, whichever is longer.

An investing company that owns _________ of another (investee) company's voting stock (but not more than 50%) is presumed to have a significant influence over the investee.

Mian, Inc., sells American gourmet foods to merchandisers in Singapore. Prepare the journal entries for Mian to record the following transactions. Include any year-end adjustments.

A company should report its portfolio of trading securities at its market value.

A company has net income of $130,500. Its net sales were $1,740,000 and its total assets were $2,750,000. Its total asset turnover is equal to 4.7%.

A company had net income of $450,000 in 2009 and $620,000 in 2010. The company had average total assets of $2,500,000 in 2009 and $3,000,000 in 2010. Calculate the return on total assets for 2009 and 2010. Comment on the results.

Explain how available-for-sale debt and equity securities are accounted for at and after acquisition and how they are reported in financial statements.

The price of one currency stated in terms of another currency is called a foreign exchange rate.

A company paid $47,500 plus a broker's fee of $400 to acquire 8% bonds with a $60,000 maturity value. The company intends to hold the bonds to maturity. The cash proceeds the company will receive upon maturity of the bonds is:

A company owns $100,000 of 9% bonds that pay interest on October 1 and April 1. The amount of interest accrued on December 31 (the company's year-end) would be: