JPIndustries Purchased Yang's Notes for $143,375 as a Long-Term Investment

question 113

Multiple Choice

J.P.Industries purchased Yang's notes for $143,375 as a long-term investment.The investment is classified as available-for-sale.J.P.'s entry to record the purchase transaction would include a:

• A)Credit to Short-Term Investments-AFS for $143,375.
• B)Credit to Long-Term Investments-AFS for $143,375.
• C)Credit to Notes Payable for $143,375.
• D)Debit to Equity Investments-AFS for $143,375.
• E)Debit to Debt Investments-AFS for $143,375.

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Definitions:

Type A Behavior

Personality characteristics that lead a person into stressful situations; type A behavior has two main components: (1) the tendency to try to accomplish too many things in too little time and (2) free-floating hostility.

PTSD

Post-Traumatic Stress Disorder, a mental health condition triggered by experiencing or witnessing a terrifying event.

Flashbacks

Sudden, intense recollections of past events or experiences, often associated with trauma.

Outsourced

The practice of hiring a third party to perform services, handle operations or provide goods that are either difficult to manage internally or outside of the business's core competencies.