ACCT 3312 TEST #1 (CH. 16,14,18) EXAM
2025 QUESTIONS AND ANSWERS
What categories can managers use to classify debt investments? - ANS held-to-maturity,
trading, available-for-sale
Do entities report unrealized gains and losses on fair value adjustments to equity security
investments in earnings? - ANS -depends on classification of investment and if fair value
option is elected
What does the face value/par value of a bond represent? - ANS the amount the issuer will
pay the bondholder at maturity
how is the price of a bond determined? (equation) - ANS DCF of interest payments + DCF of
principal
What is an HTM (held to maturity) debt investment? - ANS debt intended to be held for
entire life
how are unrealized gains and losses treated for HTM's? - ANS not recognized
what is an HTM reported in the B/S as after purchase? - ANS amortized cost
COPYRIGHT © 2025 BRAINBARTER ALL RIGHTS RESERVED 1
2025 QUESTIONS AND ANSWERS
What categories can managers use to classify debt investments? - ANS held-to-maturity,
trading, available-for-sale
Do entities report unrealized gains and losses on fair value adjustments to equity security
investments in earnings? - ANS -depends on classification of investment and if fair value
option is elected
What does the face value/par value of a bond represent? - ANS the amount the issuer will
pay the bondholder at maturity
how is the price of a bond determined? (equation) - ANS DCF of interest payments + DCF of
principal
What is an HTM (held to maturity) debt investment? - ANS debt intended to be held for
entire life
how are unrealized gains and losses treated for HTM's? - ANS not recognized
what is an HTM reported in the B/S as after purchase? - ANS amortized cost
COPYRIGHT © 2025 BRAINBARTER ALL RIGHTS RESERVED 1
