The Allowance to Adjust Investment in Available-For-Sale Securities to Market

question 98

Multiple Choice

The Allowance to Adjust Investment in Available-for-Sale Securities to Market account has a current credit balance of $1,000 after the adjustment at year-end.Available-for-sale investments have a fair value of $20,000.The original cost of the investments was $21,000.The carrying value of the investments is:

• A)$18,000.
• B)$19,000.
• C)$20,000.
• D)$21,000.

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Definitions:

Invisible Hand

A term introduced by Adam Smith to describe the self-regulating nature of the marketplace that guides individuals to unintentionally benefit society through their personal gain.

Global Aviation

The sector that encompasses all aspects of airline operations, airport management, and regulations governing international air travel, connecting the world through flight.

Government Interference

Actions taken by a government to regulate, control, or participate in economic activities, often affecting market operations.

Natural Resources

Natural resources are materials or substances that occur in nature and can be used for economic gain, such as forests, minerals, and water.