1 AW Consulting purchased an investment on 1/1/12 for $10,000. The investment will be accounted for as a trading security and this is the only investment that AW consulting has. On 1/31/12, the fair value of the investment is $10,500. On 2/29/12, the fair value of the investment is $9,800. Which statement is false?

		On 2/29/12, the Fair Value adjustment has a credit balance of $200.
		On 2/29/12, Net unrealized gains and losses - I/S has a $200 debit balance.
		On 2/29/12, Investment - Trading Securities has a $10,000 debit balance.
		On 2/29/12, the Fair Value adjustment has a credit balance of $700.

2 AW Consulting purchased an investment on 1/1/12 for $10,000. The investment will be accounted for as a trading security and this is the only investment that AW consulting has. On 1/31/12, the fair value of the investment is $10,500. Which statement is false?

		Net unrealized holding gains and losses - Equity has a $500 credit balance.
		Investments - Trading Securities has a $10,000 debit balance.
		Net unrealized holding gains and losses - IS has a $500 credit balance.
		Net unrealized holding gains and losses - Equity has a $0 balance.

3 AW Consulting purchased an investment on 1/1/12 for $10,000. The investment will be accounted for as an available-for-sale security and this is the only investment that AW consulting has. On 1/31/12, the fair value of the investment is $10,500. Which statement is false?

		Investment - Available-for-Sale Securities has a $10,000 debit balance.
		Investment - Trading Securities has a $0 balance.
		Fair Value Adjustment has a $500 debit balance.
		Net unrealized gains and losses - I/S has a $500 debit balance.

4 Other Comprehensive Income (OCI), appears in the Equity section of the Balance Sheet.

True

False

5 AW Consulting has a number of investments. All of these investments are accounted for as Held-to-maturity. It would make sense that AW Consulting would still have a balance in the Fair value adjustment account.

True

False

6 The Fair value adjustment account can have a normal balance of debit or credit.

True

False

7 The Fair Value adjustment account can appear in the asset section or the liability section of the Balance Sheet. It depends on its ending balance.

True

False