When an investment in an available-for-sale security is transferred to trading because the company anticipates selling the stock in the near future, the carrying value assigned to the investment upon entering it in the trading portfolio should be
a. its original cost.
b. its fair value at the date of the transfer.
c. the higher of its original cost or its fair value at the date of the transfer.
d. the lower of its original cost or its fair value at the date of the transfer.
Answer: b. its fair value at the date of the transfer.
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In using a combination journal, posting requires less time; however, the danger of making a posting error is increased
a. True b. False Indicate whether the statement is true or false
Which of the following statements is NOT true of the civil litigation process?
a. Most large civil cases are ultimately settled rather than going to trial. b. Settlement discussions and negotiations are often introduced at trial. c. Either of the parties may negotiate a settlement at any time during the litigation. d. Civil cases are often heard by judges instead of juries.
The records of Andrews Company reflect the following data: Work in process, beginning of the month - 4,500 units; 1 / 3 completed at a cost of $2,400 for materials, $825 for labor, and $5,00 . for overhead. Production costs for the month - materials - $20,695; labor - $13,050; overhead - $41,500 Units completed and transferred to finished goods - 35,000 Work in process, end of month - 3,00
units; 3 / 4 completed What is the unit cost for material? a. $.66 b. $.59 c. $.56 d. $.62
Most option profits and losses are realized through taking actual delivery of the currency rather than offsetting contracts
Indicate whether the statement is true or false.