A Long-Term Investment in Common Shares Acquired During 2014 at a Cost

question 66

Multiple Choice

A long-term investment in common shares acquired during 2014 at a cost of $45,000 has a market value on December 31,2014,of $45,725.The year-end adjusting entry requires a:

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

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Definitions:

Data-Carrying Capacity

The maximum amount of data that can be transmitted over a communication channel within a given time period.

Media Richness

A theory describing the capacity of a communication medium to effectively convey information and facilitate understanding, with richer media being more capable of handling complex messages.

Video Conference

Video conference is a technology that allows people in different locations to hold face-to-face meetings without needing to move to a single location together, utilizing cameras, microphones, and other telecommunications equipment.

Media Richness Model

A framework for understanding different communication media's ability to reproduce the information sent over them without loss or distortion.