Edwards Company Began Business in February of 2010

question 28

Multiple Choice

Edwards Company began business in February of 2010. During the year, Edwards purchased the three trading securities listed below. On its December 31, 2010, balance sheet, Edwards appropriately reported a $4,000 credit balance in its Market Adjustment--Trading Securities account. There was no change during 2011 in the composition of Edward's portfolio of trading securities. Pertinent data are as follows:

What amount of loss on these securities should be included in Edward's income statement for the year ended December 31, 2011?

• A) $0
• B) $3,000
• C) $7,000
• D) $11,000

---

Definitions:

Statistically Significant

A term used to indicate that the result of a study is unlikely to have occurred by chance alone, according to a pre-determined threshold probability.

Botany Class

A course of study focused on plants, their physiology, structure, genetics, ecology, distribution, classification, and economic importance.

Representative Sample

A segment of a population that correctly represents the characteristics of the whole population.

Registered

A formal process of enlisting or recording names or items in a list, database, or system for official purposes.