An Investment in Common Stock Acquired During the Year at a Cost

question 97

Multiple Choice

An investment in common stock acquired during the year at a cost of $40,000 has a year-end market value of $42,250. The year-end adjusting entry requires a:

• A) debit to Long-Term Investments for $2,250.
• B) debit to Allowance to Adjust Investments to Market for $2,250.
• C) credit to Allowance to Adjust Investments to Market for $2,250.
• D) debit to Unrealized Gain on Investment for $2,250.

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Definitions:

Symbolic Level

A domain of interaction or communication where symbols (such as language, signs, or images) convey meaning, embodying abstract ideas or concepts.

Control Variable

A variable that is kept constant during a research experiment to ensure that any changes in the outcome can be attributed to the experimental variable.

Sample

A subset of individuals or items selected from a larger population, used in research and analysis to draw conclusions or make inferences about that population.

Population

The total number of individuals or organisms of a particular species living in a specific area or environment.