When the market value of a company’s portfolio of available-for-sale securities is lower than its cost，the difference should be: a. accounted for as a valuation allowance deducted from the asset to which it relates                                                                                                                b. accounted for as an addition in the shareholders’ equity section of the balance sheet                                                                                                     c. accounted for as a liability                                                                            d. disclosed and described in a note to the financial statements but not accounted for.

Q: Which of the following shows how a payment made to settle an accrued expense, such as salaries…

A: Payment of accrued expense reduce cash balance (asset). Accrued expense is a liability that needs to…

Q: Liability with a credit balance is the classification and normal balance of Select answer from the…

A: Liabilities are the obligations of the entity. These represents the money owed to the suppliers and…

Q: When comparing fi nancial statements prepared under IFRS with those prepared underUS GAAP, analysts…

A: IFRS and US GAAP follows similar accounting policies when it comes to realized losses and unrealized…

Q: Which of the following is TRUE regarding the requirement for a company to exclude Short- Term…

A: The correct answer is 4. All of the above are true. According to the accounting principles, a…

Q: A debit balance in the Retained Earnings accounts is reported as a (an) a. asset b.…

A: Retained Earnings refers to amount of Profit set aside by the company during the year. it is known…

Q: For fi nancial assets classifi ed as trading securities, how are unrealized gains and lossesrefl…

A: Trading securities are debt or equity assets that management expects to aggressively sell for gain…

Q: How would you describe a change that a company makes from the equity method to the fair-value method…

A: Definition:   Equity method: Equity method is the method used for accounting equity investments…

Q: Dividend revenue is recognized for trading securities and available for sale securities even if held…

A: Solution Concept Dividend is recognized in income statement for trading securities if they are held…

Q: which of the following is true of the effect of net loss on financial statements?

A: The objective of this question is to understand the impact of a net loss on a company's financial…

Q: 16. When the market value of a company's available-for-sale investments is lower than its cost, the…

A: When the market value of a company's available-for-sale investments is lower than its cost, the…

Q: Which one of the following is a nominal (temporary) account?   Select one: Supplies Dividends…

A: Under traditional accounting, the accounts are categorized as nominal accounts and real accounts.…

Q: Unrealized holding gains and losses are included in net income for          securities that are…

A: Unrealized holding gains and losses refer to changes in the fair value of securities that are held…

Q: The equity method of accounting for investments requires a.the investment to be increased by the…

A:

Q: Which statement is not true?

A: In the above question, there are four statements; we must identify which of the four statements is…

Q: Which of the following statements related to securities is not true: O Unrealized gains and losses…

A: The statement that is not true related to securities is given below

Q: What is the main problem in using a balance sheet to provide anaccurate assessment of the value of a…

A: It is difficult to determine the value of a company's equity using a balance sheet because of the…

Q: If a company uses a non-GAAP fi nancial measure in an SEC fi ling, then the companymust:A . give…

A: Solution:- If a company uses a non-GAAP financial measure in an SEC filing, then the company must…

Q: Which of the following statements concerning retained earnings is true?a. Retained earnings is the…

A: Financial statements : (1) Financial statements are prepared to summaries the account at the end of…

Q: When a business has Available-for-Sale Securities, the account Unrealized Loss on Available-for-Sale…

A: Available-for-sale securities Available-for-securities are referred to as equity or debt security…

Q: It is included in total as a component of shareholders’ equity.

A: Minority interest is that part of the net assets which is not owned by the parent company. It is…