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Allushta [10]
3 years ago
5

Global Commerce Corporation purchased trading debt investments for $136,000 on December​ 31, 2018. There is a decrease of $3,400

in the fair value of the trading debt investments by the end of the year 2019. Which of the following is the correct journal​entry?
A Unrealized Holding
Losslong dash—Trading 3,400
Fair Value
Adjustmentlong dash—Trading 3,400
B. Fair Value
Adjustmentlong dash—Trading 3,400
Unrealized Holding
Losslong dash—Trading 3,400
C. Trading Debt Investments 3,400
Unrealized Holding
Losslong dash—Trading 3,400
D. Unrealized Holding
Losslong dash—Trading 3,400
Retained Earnings
Business
1 answer:
stellarik [79]3 years ago
3 0

Answer:

A. Unrealized Holding  Loss - Trading 3,400

Fair Value  Adjustment - Trading 3,400

Explanation:

Since this investment is classified as a trading investment, any change in its fair market value must be included in their income statement. The appropriate journal entry should be:

Dr Unrealized loss on trading security 3,400

     Cr Debt investments 3,400

This will decrease the carrying value of the debt investments in the balance sheet and the loss will be included in the 2019 income statement. The fair value adjustment account normally has a credit balance since it decreases the carrying value of the investment account.

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Answer:

average total cost per unit is not at its lowest possible cost

Explanation:

A monopolistic competition is defined as such a market where many different firms or companies sells various differentiated products. Here the firm has some control on the price of the product. It is a market structure of considerably no price competition.

The monopolistic firms are not productive enough because the output is very less than the optimum level of the society as the average total cost of the producer per unit is not at the lowest possible cost.

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While conducting an audit of a new nonissuer client, an auditor discovers that accounting policies applied in relation to the fi
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Answer:

A) Obtain sufficient appropriate evidence about whether changes in the accounting policies have been appropriately accounted for and adequately presented and disclosed in accordance with the applicable financial reporting framework.

Explanation:

When such things happen, the auditor must search more information regarding the accounting policies and must evaluate if the company's accountants adopted accounting policies that are legal and adjust to applicable financial reporting (e.g. GAAP in the US). The auditor must also try to determine the effects of the applied policies and if all proper disclosures have been included or not. The auditor should also try to determine why the company's accounting department did that and how do they justify it.

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asambeis [7]

Answer:

Information richness.

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Hope this helps!!!

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8 0
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Lilit [14]

Answer:

4

1

3

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Explanation:

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3 0
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Which of the following is true of external recruiting, compared to internal recruiting?
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