If the Cost of an Available-For-Sale Security Exceeds Its Fair

question 27

Multiple Choice

If the cost of an available-for-sale security exceeds its fair value by $40000 the entry to recognize the loss

• A) is not required since the share prices will likely rebound in the long run.
• B) will show a debit to an expense account.
• C) will show a credit to a contra-asset account that appears in the stockholders' equity section of the balance sheet.
• D) will show a debit to an unrealized loss account that is deducted in the stockholders' equity section of the balance sheet.

---

Definitions:

Census Bureau

A national agency responsible for collecting, analyzing, and publishing statistical data about the population, economy, and society of a country.

Marketing Research Study

A systematic approach to collecting, analyzing, and interpreting data about a market, competition, and consumer preferences.

Internal Secondary Data

Data that has been collected within an organization for purposes other than the current research project but can be repurposed for new analysis.

Burger King

A global fast-food chain known for its flame-grilled burgers, specifically the Whopper, competing in the quick-service burger category.