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Concept Introduction:
Trading securities are the investments made in the securities with the intent to sell them in short-term.
The Fair-Value adjustments are recorded at the year-end to record the deviations from the price at which securities have been purchased. If the fair value of the shares at the year-end are more than the price at which shares are purchased, the unrealized gain will be recorded, if it less than unrealized loss is recorded and fair value adjustment accounts are created.
The brokerage amount is added to the total amount of purchase in case of the shares purchased and deducted in case of the sale of the shares.
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Chapter 15 Solutions
Connect 2-Semester Access Card for Fundamental Accounting Principles
- What is its average inventory of this financial accounting question?arrow_forwardThe underapplication of overhead will result in Group of answer choices understatement of net income. overstatement of cost of goods sold. understatement of cost of goods sold. overvalued finished goods inventory.arrow_forwardchoose best answer financial accountingarrow_forward
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