Q1. Investments classified as short term are intended to be sold or liquidated in (______________ / more than one year).
Q2. Trading securities are reported on the balance sheet at their (acquisition cost / ______________). The fair market value of the trading securities reported above is ______________. During this accounting period the market value of these trading securities has (increased / ______________ / can’t tell) by ______________. Because this is the first year of operation, these securities must have been originally purchased for ______________.
Q3. If these securities were sold next year, a(n) (______________ / unrealized) loss would be reported if the selling price was less than the (______________ / market value at the end of last year / current market value).
Q4. The amount of interest earned during this accounting period was __________. Of this amount, ___________ was collected in cash during this accounting period and _______ is the amount of cash to be received in the future.
Q5. The income statement accounts listed above would be reported on a multi-step income statement as (operating / ______________) revenues and expenses, indicating these are revenues and expenses from (operating / ______________/ ______________). (Circle all that apply.)
Q6. As a result of the financial statement information listed above, Year 1 net income will (increase / ______________) by ______________.