Intermediate Accounting 280

Review Materials for Mid-term Exam 1
 
Chapter 14: Investments in Debt and Equity Securities

Test Composition: [Print Version]

Part 1:

Objective Questions

Multiple Choice [1 point each]

10

Investment Terms and Definitions [1 point each]

15

Part 2:

Problem solving

1. Cost method of accounting for investments

15

• Available for Sale Securities
• Trading Securities

2. Equity method of accounting for investments

• Equity Method Review
• Equity Method Exercise

10

4. Effective-interest method

15

• Held-to-maturity securities

5. Transfers between investment categories

  35

• Reclassification Review
• Reclassification Exercise

Total points possible:

100