Author Question: Securities held by an Investment Trust Fund and carried on the books at 100,000 are sold for 110,000 ... (Read 55 times)

Kikoku · **on:** Jul 5, 2018

Securities held by an Investment Trust Fund and carried on the books at 100,000 are sold for 110,000 . On receiving the cash from the sale, how should the Investment Trust Fund account for the 10,000 gain?

a. as a direct credit to net position of the Fund participants
b. as a liability - due to Fund participants
c. as an addition - net increase in fair value of investments
d. as a gain - equity in investment pool

Question 2

Processing methods
a. are the policies and procedures that protect assets from misuse
b. must be computerized.
c. are the means by which the accounting system collects, summarizes, and reports accounting information
d. ensure that business laws and regulations are followed