Chapter 2- Accounting

Long-term investments in securities are recorded on the balance sheet at their original cost, unless the market value has increased significantly, in which case they should be written up to their fair market value.

False

Capital stock represents the market's value of the company.

False

The financial position at the end of a period is reflected on the

Balance Sheet

Investments representing short-term holding of securities would appear on the balance sheet as

Current Assets

Which of the following accounts represents the market valuation of the company?

None of the Above

Which of the following is an asset?

None of the Above

Which of the following statements represents a flow concept?

None of the Above

The retained earnings account is a part of which of the following accounts?

Owner's Equity

Arrow, Inc. was incorporated in 1904. Land was purchased at that time for $10,000. This same land would be carried on the balance sheet of Arrow, Inc. in 2004 as $10,000.

True

The balance maintained in a checking account (also called a demand deposit or D.D.A. account) is considered a part of a company's cash account.

True