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CHOICE maturity date o ,2012 would include a hCompany has a calendar year -Term Inv A)debit to 1. Them C) debit to Cash o 200 D) debit to Cash for $1,200 A) the purchase of an investviont. D) changes in the market value of the investmet 2) Realired gains and lones from B) management's decision to adjust the value of the invetment C) the sale of the investment 3) Receiving a cash dividend from an availabde for-sale invetment wquires the entry following urnal 3 )a debit to Unrealized Gain on Investment and a credit to Dividend Revenue ) and a credit to Unrealieed Gain on Investments a debit to Cash C) a debit to Cash and a credit to Dividend Revenue D) no journal entry Investor makes a memorandum entry in the accounting records 4) Dodson Company owns 17,500 of the 50,000 shares of outstanding common stock of Ferguson Company. Dodson Company should account for this investment using the A) lower-of-cost-or-market method. C) market method B) consolidation method. D) equity method of the common 5) 5) Consolidated financial statements are prepared when a company owns stock of another company. Bless than 50% A) less than 20% C) between 20% and 50% D) more than 50% 6) 6) Monthly sales were $200,000. Warranty costs are estimated at 4% of monthly sales. In the month B) Inventory for $8,000 D) Sales for $8,000. of sale, the company should record a credit to: A) Warranty Expense for $8,000 C) Warranty Payable for $8,000 7) The journal entry to record accrued interest on a short-term note payable must include a debit 7) to: A) interest expense and a credit to interest payable. B) interest payable and a credit to notes payable. C) interest expense and a credit to cash. D) interest payable and a credit to cash

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