Multiple Choice
If the cost of an available-for-sale security exceeds its fair value by $40000 the entry to recognize the loss
A) is not required since the share prices will likely rebound in the long run.
B) will show a debit to an expense account.
C) will show a credit to a contra-asset account that appears in the stockholders' equity section of the balance sheet.
D) will show a debit to an unrealized loss account that is deducted in the stockholders' equity section of the balance sheet.
Correct Answer:

Verified
Correct Answer:
Verified
Q22: Match the items below
Q23: Short-term investments are securities held by a
Q24: Cody Industries owns 35% of Macarthy Company.
Q25: To be classified as a short-term investment
Q26: At the end of the first year
Q28: An unrealized gain or loss on available-for-sale
Q29: For accounting purposes the method used to
Q30: Which of the following would not be
Q31: A company that acquires less than 20%
Q32: Under the equity method the investor records