The treasurer of a public company is reviewing the company's current i

1.The treasurer of a public company is reviewing the company's current investment portfolio. All debt investments in the portfolio are classified as held-to-maturity. For the Rangar County bond investment, the fair value is higher than the present value based on expected future cash flows. The amortized cost is between the fair and present values, and all values are higher than the bond's original cost to the company. On the year-end financial statements, the treasurer will:

2.MCQ-05463Beach Co . determined that the decline in the fair value (FV) of a debt investment was below the amortized cost and other than temporary, although above the present value of the principal and interest expected to be collected . The investment was classified as available-for-sale on Beach's books . The controller would properly record the decrease in FV under U .S . GAAP by including it in which of the following? 选项： A:Other comprehensive income section of the income statement only. B: Earnings section of the income statement and writing down the cost basis to FV. C: Earnings section of the income statement, net of tax, and writing down the cost basis to FV. D:Other comprehensive income section of the income statement, and writing down the cost basis to FV.

3.Beach Co. determined that the decline in the fair value (FV) of a debt investment was below the amortized cost and other than temporary, although above the present value of the principal and interest expected to be collected. The investment was classified as available-for-sale on Beach's books. The controller would properly record the decrease in FV under U.S. GAAP by including it in which of the following? 选项： A: Other comprehensive income section of the income statement only. B: Earnings section of the income statement and writing down the cost basis to FV. C: Earnings section of the income statement, net of tax, and writing down the cost basis to FV. D: Other comprehensive income section of the income statement, and writing down the cost basis to FV.

4.What is net present value?选项： A:Net present value is the cost of an investment.; B:Net present value is the market value of an investment.; C:Net present value is the sum of the market value of an investment and its cost.; D:Net present value is the difference between the market value of an investment and its cost.

5.An unrealized gain occurs:（）。选项： A、If the fair value of the investment is greater than the current recorded value. B、If the fair value of the investment is less than the current recorded value. C、If the sales price is greater than the investment carrying amount. D、other three choices are not true.

6.A loss is recorded on the sale of a PPE when the:选项： A:cash received exceeds the asset’s book value.; B:asset’s book value is less than its historical cost.; C:asset’s book value is greater than the amount of cash received from the sale.; D:cash received exceeds the cash paid for the replacement asset.

7.A “constructive loss clause” in a maritime insurance policy usually will treat a loss as being a “total loss” if: 选项： A:actual loss exceeds one-half the value of the cargo.; B:any unit of the cargo is entirely lost.; C:the cost of recovery exceeds the cargo’s value.; D:Either a. or c. above

8.All of the following are considered financial risks 选项： A、the decline in the value of a bond portfolio because of rising interest rates. B、increased cost of production because of rising commodity prices. C、loss of money because of adverse movements in currency exchange rates. D、destruction of a production facility caused by an explosion.

9. Identify all statements that are consistent with the concept of present value. 选项： A:The present value of a future amount always is less than that future amount.; B:An amount of money available today is considered more valuable than the same sum that will not become available until a future date.; C:A bond's issue price is equal to the present value of its future cash flows.; D:The liability for an installment note payable is recorded at only the principal amount,rather than the sum of the scheduled future payments.

10.Which of the following is true about perpetuities?选项： A:All else equal, the present value of a perpetuity is higher when the periodic cash flow is higher.; B:All else equal, the present value of a perpetuity is higher when the interest rate is lower.; C: If two perpetuities have the same present value and the same interest rate, they must have the same cash flows.; D:All of the above are true statements.

11.Determine the most appropriate effect of changes in bond yield on the fair value of the bond. 选项： A: An increase in bond yield will decrease the fair value of the bond liability, and the loss will be recognized in the income statement. B: An increase in bond yield will decrease the fair value of the bond liability, and the gain will be recognized in the income statement. C: A decrease in bond yield will decrease the fair value of the bond liability, and the gain will be recognized in the income statement.

12. Long-term investments in held-to-maturity debt securities are accounted for using the: 选项： A: Fair value method with fair value adjustment to income.; B: Fair value method with fair value adjustment to equity.; C: Cost method with amortization.; D: Cost method without amortization.; E:Equity method.

13.When an investment in an associate is acquired, the initial amount of the investment should be选项： A:recorded at cost to the investor. B:adjusted to reflect fair value of the assets acquired. C:C reduced by the goodwill component of the cost to the investor. D:D recorded at the investor’s share of the fair value of the investee’s assets.

14.The following incorrect statements are those for () 选项： A: The net present value is equal to 0, indicating that the discount rate at this time is the internal rate of return. B: Net present value is greater than 0, the investment plan is feasible. C: The net present value is the difference between the total present value of future remuneration and the present value of the initial investment D: Net present value is greater than 0, and the net present value index is less than 1.

15.Assuming a positive interest rate, the dollar amount of a future payment is: 选项： A:exactly the same as its present value. B:approximately the same as its present value. C:less than its present value. D:more than its present value.

16.The above figure shows the marginal social benefit and marginal social cost curves of coffee in the nation of Kaffenia. Producing and consuming the efficient quantity of coffee in Kaffenia means that 选项： A、the marginal social cost of the last pound of coffee is at the lowest possible value. B、 the marginal social benefit of the last pound of coffee is at its highest possible value. C、 to produce more coffee, the marginal social benefit of an additional pound of coffee is less than its marginal social cost. D、 all of the above

17.If a bond's coupon rate is above its yield to maturity, the bond's price is 选项： A、less than its face value. B、greater than its face value. C、equal to its face value. D、equal to the coupon rate divided by the yield.

18.If a bond's coupon rate is above its yield to maturity, the bond's price is 选项： A、less than its face value. B、greater than its face value. C、equal to its face value. D、equal to the coupon rate divided by the yield.

19.The market value or issue price of a bond is equal to the present value of all future cash payments provided by the bond.

20.Resource use is allocatively efficient when marginal benefit is 选项： A、greater than marginal cost. B、equal to marginal cost. C、less than marginal cost. D、at its maximum value.

21.In appraisals, depreciation can be defined as:( ) 选项： A、A deduction from value B、Actual loss in value compared to current cost as new ‍ C、Diminished utility D、‍Either (Actual loss in value compared to current cost as new) or (Diminished utility)

22. In Britain. 选项： A: companies must use general purchasing power accounting. B: many companies have periodic revaluations of their land, equipment andBuildings to current market values or fair market value. C: companies must use both of the general purchasing power accounting andCurrent cost accounning. D: only historical cost measurement is used by company.

23.When calculating the present value of the tax shield, if the company's estimated debt remains unchanged, the discount rate should be selected 选项： A、Unlevered capital cost B、Levered capital cost C、equity capital cost D、debt before tax capital cost