A Debt Investment Classified as Trading Securities Is Purchased for $73,500

question 70

Multiple Choice

A debt investment classified as trading securities is purchased for $73,500. At year end, when the fair value of the debt is $65,000, the adjusting entry includes a

• A) credit to Debt Investments.
• B) debit to Loss on Sale of Debt Investment.
• C) credit to Fair Value-Adjustment-Trading.
• D) credit to Unrealized Loss-Income.

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Definitions:

Selective Distribution

A strategy where a product is distributed through a limited number of intermediaries in selected locations to maintain a certain level of exclusivity or image.

Exclusive Distribution

A distribution strategy where a supplier grants exclusive rights to a single wholesaler or retailer to sell their product in a specific territory.

Specialized Distribution

Specialized distribution refers to a supply chain strategy that targets distributing products through channels adept at handling specific types of goods or catering to certain market niches.

Genius Bar

A tech support station located inside Apple's retail stores, where customers can receive advice, diagnostics, and repairs for their Apple products.