A security is a share or interest representing financial value.

True

False

What is Gaya's rate of return on total assets?

A.12.5%

B.13.0%

C.13.6%

D.None of the above

Total Assets, December 31, 2018	$480,000
Total Assets, December 31, 2019	440,000
For Year Ended December 31, 2019:
Interest Expense	16,800
Net Income	43,000

Which of the following is not an example of a security?

A.Treasury bills

B.municipal bond

C.preferred stock

D.All are examples of a security.

Equity securities, in which the investor lacks the ability to participate in the decisions of the investee company, are initially accounted for at the lower-of-cost-or-market value.

True

False

Global Commerce Corporation purchased trading debt investments for $243,000 on December 31, 2018. There is a decrease of

$5,600 in the fair value of the trading debt investments by the end of the year 2019. Which of the following is the correct journal entry?

A.

Fair Value AdjustmentTrading	5,600
Unrealized HoldingTrading		5,600

B.

Trading Debt Investments	5,600
Unrealized HoldingTrading		5,600

C.

Unrealized HoldingTrading	5,600
Retained Earnings		5,600

D.

Unrealized Holding LossTrading	5,600
Fair Value AdjustmentTrading		5,600