The Fair Value of a Long-Term Available-For-Sale Security Has Increased

question 79

Multiple Choice

The fair value of a long-term available-for-sale security has increased from the last carrying value. The company uses an allowance account to adjust the investment. The journal entry to record this increase will include:

• A)a debit to the Allowance to Adjust Investment in Available-for-Sale Securities to Market.
• B)a credit to the Allowance to Adjust Investment in Available-for-Sale Securities to Market.
• C)a debit to the Unrealized Gain on Investment in Available-for-Sale Securities.
• D)a credit to the Unrealized Loss on Investment in Available-for-Sale Securities.

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Definitions:

Coordinators

Individuals or roles designated to organize, schedule, and manage activities and resources to ensure efficient operation and achievement of goals.

Structured

Organized and planned in a clear, systematic way, often involving a specific format or arrangement.

Social Context

The environmental, cultural, and interpersonal factors that influence individuals and interactions in society.

Professionalism

The competence or skill expected of a professional, including adherence to ethical standards.