When an Equity Security Is Appropriately Carried and Reported as Securities

question 12

Multiple Choice

When an equity security is appropriately carried and reported as securities available for sale, a gain should be reported in the income statement:

• A)When the fair market value of the security increases.
• B)When the present value of the security increases.
• C)Only when the Dow Jones Industrial Average increases at least 100 points.
• D)Only when the security is sold.

Understand the purpose and operation of a petty cash fund, including establishment, replenishment, and adjustment.

Recognize the different types of documents and their roles in internal control and cash management.

Identify the components that affect the cash balance per books and per bank.

Analyze how specific transactions impact the adjusted cash balance per books.

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Definitions:

Sociable

Exhibiting a willingness or tendency to engage with others in a friendly manner.

Withdrawal Symptoms

Physical and mental symptoms that occur after stopping or reducing intake of a substance that was used heavily and regularly.

Tremors

Involuntary, rhythmic muscle contractions resulting in shaking movements in one or more parts of the body.

Nausea

A sensation of unease and discomfort in the stomach with an urge to vomit.