ACC 522- EXAM 1 TERMS & THINGS
QUESTIONS AND ANSWERS UPDATE
2026 WITH VERIFIED SOLUTIONS
100% CORRECT
what does "mark to market mean" - CORRECT ANSWES -- recognize at fair value
which debt status is amortized? - CORRECT ANSWES -- held to maturity
how is trading and available for sale debt securities recorded? - CORRECT ANSWES --
at fair value
AFS unrealized holding G/L as recorded as? - CORRECT ANSWES -- equity
Trading unrealized holding G/L are recorded as? - CORRECT ANSWES -- net income
debt securities represent? - CORRECT ANSWES -- an obligation
equity securities represent? - CORRECT ANSWES -- ownership
0-20% ownership - CORRECT ANSWES -- passive or little to none
20-50% ownership - CORRECT ANSWES -- significant influence, equity method
> 50% - CORRECT ANSWES -- complete control (majority voting rights)
journal entry for recording interest from debt - CORRECT ANSWES -- DR: interest
receivable
CR: interest revenue
CR: debt investment (HTM) or (AFS ) or (T)
journal entry for recognizing Future Value - CORRECT ANSWES -- DR: Future Value
adjustment (AFS) or (T)
CR: Unrealized holding G/L- equity
what must you do for a year 2 future value adjustment? - CORRECT ANSWES --
account for the change in FV using a t account
journal entry of a sale of stock: - CORRECT ANSWES -- DR: Cash
DR/CR: gain (loss) of investment
CR: Equity Investment
QUESTIONS AND ANSWERS UPDATE
2026 WITH VERIFIED SOLUTIONS
100% CORRECT
what does "mark to market mean" - CORRECT ANSWES -- recognize at fair value
which debt status is amortized? - CORRECT ANSWES -- held to maturity
how is trading and available for sale debt securities recorded? - CORRECT ANSWES --
at fair value
AFS unrealized holding G/L as recorded as? - CORRECT ANSWES -- equity
Trading unrealized holding G/L are recorded as? - CORRECT ANSWES -- net income
debt securities represent? - CORRECT ANSWES -- an obligation
equity securities represent? - CORRECT ANSWES -- ownership
0-20% ownership - CORRECT ANSWES -- passive or little to none
20-50% ownership - CORRECT ANSWES -- significant influence, equity method
> 50% - CORRECT ANSWES -- complete control (majority voting rights)
journal entry for recording interest from debt - CORRECT ANSWES -- DR: interest
receivable
CR: interest revenue
CR: debt investment (HTM) or (AFS ) or (T)
journal entry for recognizing Future Value - CORRECT ANSWES -- DR: Future Value
adjustment (AFS) or (T)
CR: Unrealized holding G/L- equity
what must you do for a year 2 future value adjustment? - CORRECT ANSWES --
account for the change in FV using a t account
journal entry of a sale of stock: - CORRECT ANSWES -- DR: Cash
DR/CR: gain (loss) of investment
CR: Equity Investment
