A Long-Term Investment in Available-For-Sale Securities Was Acquired at a Cost

question 81

Multiple Choice

A long-term investment in available-for-sale securities was acquired at a cost of $40,000.At year-end,the fair value of the securities is $42,250.The year-end adjusting entry requires a:

• A)credit Investment in Available-for-Sale Securities for $2,250.
• B)debit Allowance to Adjust Investment in Available-for-Sale Securities to Market for $2,250.
• C)credit Allowance to Adjust Investment in Available-for-Sale Securities to Market for $2,250.
• D)debit Unrealized Loss on Investment in Available-for-Sale Securities for $2,250.

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Definitions:

Loop Of Henle

A U-shaped tube in the kidney nephron essential for concentrating urine and conserving water by creating an osmotic gradient in the medulla.

Glomerulus

A network of small blood vessels located in the kidney that performs the first step of filtering blood to form urine.

Renal Medulla

The inner region of the mammalian kidney. Compare with renal cortex.

Renal Pyramids

Cone-shaped structures located in the kidneys, composed of tubules that are essential for urine formation.