A Long-Term Investment in Common Shares Acquired During 2020 at a Cost

question 75

Multiple Choice

A long-term investment in common shares acquired during 2020 at a cost of $45,000 has a market value on December 31, 2020, of $45,725. The year-end adjusting entry requires a:

• A) debit to Long-Term Investment for $725
• B) credit to Allowance to Adjust Investment to Market for $725
• C) debit to Unrealized Gain on Investment for $725
• D) no entry required

---

Definitions:

Learning Style

The preferred or most effective method by which an individual learns and acquires information, such as visual, auditory, or kinesthetic.

Adult Learners

Describes individuals beyond the traditional college age who engage in learning activities, emphasizing the unique characteristics and needs of this demographic.

Theoretical Frameworks

Structured sets of concepts and propositions that are aimed at explaining phenomena by specifying relations among variables.

Work-Related Needs

Requirements or necessities that employees have in order to perform their job duties effectively, including tools, resources, a conducive work environment, and proper compensation.