Use the Following Information for Questions:
Terry Inc -At the End of the Third Quarter, the Adjusting Entry

question 61

Multiple Choice

Use the following information for questions:
Terry Inc.purchased shares in three companies during the second quarter of 2011.They prepare interim financial statements each quarter and yearly statements as of December 31.Shown below are their investments in temporary investments for 2011. $\begin{array}{lrrrrrr}&\text { 2nd Qtr. } && \text { 3rd Qtr. } && \text { 4th Qtr. }\\\text { Investments } & \text { Cost } & \text { Market } & \text { Cost} & \text { Market } & \text { Cost} & \text { Market }\\\hline\text { Sunshine Co. shares } & \$ 43 & \$ 45 & \$ 43 & \$ 46 & \$ 43 & \$ 45 \\\text { New Ventures Inc. shares } & 101 & 99 & 101 & 105 & 101 & 103 \\\text { Good Day. shares } & 51 & 49 & 51 & 47 & 51 & 46\end{array}$
-At the end of the third quarter, the adjusting entry would include a:

• A)debit to temporary investments for $5.
• B)credit to gain on temporary investments for $3.
• C)debit to unrealized loss on temporary investments for $3.
• D)credit to temporary investments for $5.

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Definitions:

Comparative Negligence

A principle of tort law that compares the fault of each party involved in an accident and allocates the damages accordingly.

Forgeries

The act of fraudulently making or altering a document or item with the intent to deceive.

Plaintiff-Depositor

A plaintiff-depositor refers to an individual who deposits funds or assets and subsequently becomes a plaintiff in a legal action related to those deposits.

Endorsements

Signatures or instructions written on the back of a negotiable instrument or document, indicating the transfer of rights to another party.