5 the allowance to adjust investments account is a long term asset account 6 unreali 4310587

5) The Allowance to Adjust Investments account is a Long-Term Asset account.

6) Unrealized gains and losses result from changes in the investments fair value.

7) The Allowance to Adjust Investment to Market account will always have a debit balance.

8) GAAP requires companies to adjust their available-for-sale-securities to market value as of the balance sheet date.

9) For accounting purposes, receipt of a stock dividend is handled the same as a receipt of a cash dividend.

10) For a stock dividend, the investor records dividend revenue.

11) Realized gains on the sale of available-for-sale securities cannot be used to compute net income.

12) An investee should report available-for-sale securities that might be sold in the next 12 months as a short-term investment.

13) Dividends received on stock investments of less than 20% should be credited to the Investment account.

14) An investment in common stock acquired during the year at a cost of $50,000 has a market value at year end of $50,290. The adjusting entry requires a credit to Allowance to Adjust Investment to Market for $290.