A Decrease in the Fair Value of a Security That

question 41

Multiple Choice

A decrease in the fair value of a security that has not yet been realized through an actual sale of the security is called a(n) :

• A) Contingent loss.
• B) Realizable loss.
• C) Unrealized loss.
• D) Capitalized loss.
• E) Market loss.

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Definitions:

General Journal Entry

The basic method of recording financial transactions, involving debits and credits, in the general journal.

Sales Tax

A tax levied by governments on the sale of goods and services, typically calculated as a percentage of the retail price.

Credit Sale

Transactions where goods or services are sold by providing credit to the customer, with payment to be received at a later date.

Merchandise Return

Goods returned by the buyer to the seller after purchase due to defects, dissatisfaction, or other reasons, often resulting in a reversal or adjustment of the initial sale transaction.