If the cost of an available-for-sale security exceeds its fair value by $40,000, the entry to recognize the loss A) will show a debit lo an unrealised loss account that is deducted in the stockholder- equity section of the balance sheet. B) is not required since the share prices will likely rebound in the long run. C) will show a debit to an expense account. D) will show a credit to a contra-asset account that appears in the stockholder' equity section of the balance sheet. Hayward Manufacturing Company developed the following data; A) $540,000. B) cannot be determined from the data provided. C) $570,000. D) $390,000. The times interest earned ratio is computed by dividing A) income before interest expense by interest expense. B) net income by interest expense. C) income before income taxes and interest expense by interest expense. D) income before income taxes by interest expense. Which of the following is not an advantage of the partnership form of business? A) Freedom from governmental regulations and restrictions B) Ease of decision making C) Mutual agency D) Ease of formation Which of the following is not a principal characteristic of the partnership form of business organization? A) Limited liability B) Limited life C) Association of individuals D) Mutual agency