For instructor use only h 33 test bank for financial

FOR INSTRUCTOR USE ONLY
H-33

Test Bank for Financial Accounting: Tools for Business Decision Making, Eighth Edition
Reporting
FOR INSTRUCTOR USE ONLY
H-34

Reporting and Analyzing Investments
149. If the cost of an available-for-sale security exceeds its fair value by $29,000, the entry to
recognize the loss
Problem Solving, IMA: FSA
150. The balance in the Unrealized Gain or Loss—Equity account will
Reporting
151. Assume that Chapman’s Inc.’s trading securities have a total cost of $185,000 and a total
fair value of $215,000 at year end. The related adjusting entry would include a debit to
152. Which of the following is not a category used for valuing and reporting debt investments?
a. Securities held for investing purposes.
b. Trading securities.
c. Held-to-maturity securities.
d. Available-for-sale securities.
Ans: A, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: Problem Solving,
IMA: Reporting