The fair value of a long-term 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 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 credit to the Unrealized Loss on Investment in Available-for-Sale Securities.
D) a debit to the Unrealized Gain on Investment in Available-for-Sale Securities.
Correct Answer:
Verified
Q41: On the purchase date, long-term available-for-sale equity
Q47: When accounting for long-term investments in available-for-sale
Q51: The balance in the Unrealized Gain on
Q57: Poultry Company had the following transactions pertaining
Q59: Purdue Company had the following transactions pertaining
Q62: Which method is used when one company
Q63: The Allowance to Adjust Investment in Available-for-Sale
Q65: A company has a long-term investment in
Q68: Other comprehensive income:
A)is a separate section of
Q69: U.S. Generally Accepted Accounting Principles require that
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents