The securities usually pay interest.
This type of investment must be currently traded in the securities
market.
Debt investments are recorded at the price paid less brokerage fees.
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Multiple Choice Question 81
Revenue is recognized when cash dividends are received under
the cost method.
the equity method.
the controlling interest method.
both the cost and equity methods.
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Multiple Choice Question 145
An unrealized loss on non-trading securities is
closed-out at the end of the accounting period.
deducted from the cost of the investment.
reported as a separate component of stockholders’ equity.
reported under Other Expenses and Losses in the income statement.
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Multiple Choice Question 93