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:

Statistically Significant

A determination that the results of a study are unlikely to have occurred by chance alone, according to a predefined threshold for significance, often indicating a real effect or difference.

Theoretical Significance

The importance or relevance of a concept or finding within a theoretical framework or body of knowledge, often indicating implications for understanding and further research.

Researcher's Expectations

The beliefs or biases a scientist may hold regarding the outcome of an experiment, which can influence the interpretation of data.

Study Influence

The examination of how various factors impact or change behaviors, attitudes, or outcomes in research or practical contexts.