The Market Value of an Available-For-Sale Security Has Decreased from the Last

question 121

Multiple Choice

The market value of an available-for-sale security has decreased from the last carrying value. The journal entry to record this decrease will include:

• A) a debit to the Allowance to Adjust Investment to Market.
• B) a credit to the Allowance to Adjust Investment to Market.
• C) a credit to the Unrealized Loss on Investment.
• D) a debit to the Unrealized Loss on Investment.

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Definitions:

Additional Benefits

Extra advantages or positive outcomes that accompany a primary benefit or result.

Marginal Cost

The financial outlay required to produce an additional unit of a good or service.

Gasoline

A transparent, petroleum-derived liquid that is used primarily as a fuel in most spark-ignited internal combustion engines.

Car Wash

A facility for cleaning vehicles, typically involving an automated system with brushes and water jets or a manual cleaning by workers.