2016美国注册会计师考试《财务会计与报告》习题(1)

　　1.Kale Co. purchased bonds at a discount on the open market as an investment and intends to hold these bonds to maturity. Kale should account for these bonds at:

　　a. Fair value.

　　b. Lower of cost or market.

　　c. Amortized cost.

　　d. Cost.

　　答案：C

　　Explanation

　　Choice "c" is correct. Bond investments which are intended to be held until the maturity date are classified as held-to-maturity securities and are reported at their amortized cost.

　　Choice "d" is incorrect. Investments in marketable securities are reported at fair value or at their amortized cost, depending on their classification.

　　Choice "a" is incorrect. Trading securities and available-for-sale securities are reported at their fair value.

　　Choice "b" is incorrect. The lower of cost or market method is no longer used to account for marketable securities.

　　2.On both December 31, Year 1, and December 31, Year 2, Kopp Co.\'s only marketable equity security had the same market value, which was below cost. Kopp considered the decline in value to be temporary in Year 1 but other than temporary in Year 2. At the end of both years the security was classified as an available-for-sale asset. Kopp could not exercise significant influence over the investee. What should be the effects of the determination that the decline was other than temporary on Kopp\'s Year 2 net available-for-sale assets and net income?

　　a. No effect on both net available-for-sale assets and net income.

　　b. No effect on net available-for-sale assets and decrease in net income.

　　c. Decrease in both net available-for-sale assets and net income.

　　d. Decrease in net available-for-sale assets and no effect on net income.

　　答案：B

　　Explanation

　　Choice "b" is correct. In Year 1, the security would be written down to fair value. The unrealized holding loss would be reported in other comprehensive income. In Year 2, the unrealized holding loss would be removed from accumulated other comprehensive income and recognized in earnings as a realized loss since the decline is classified as other than temporary in Year 2. This Year 2 entry has no effect on available-for-sale assets and decreases net income by the amount of the realized loss.

　　Choice "a" is incorrect. In Year 2, the unrealized holding loss would be removed from accumulated other comprehensive income and recognized in earnings as a realized loss.

　　Choice "d" is incorrect. In Year 1, the security would be written down to fair value. The unrealized holding loss would be reported in other comprehensive income. In Year 2, the unrealized loss would be removed from accumulated other comprehensive income and recognized in earnings as a realized loss.

　　Choice "c" is incorrect. In Year 1, the security would be written down to fair value.