Use the Following Information to Answer Questions

question 91

Multiple Choice

Use the following information to answer questions
Lacey Inc. reported these transactions relating to marketable trading investments intended to generate profits and to be sold in the near term:
-The entry to record the purchase of the Cagney shares on Feb. 1 would include a

• A)debit to Available-for-Sale Investments.
• B)debit to Trading Investments.
• C)debit to Strategic Investments.
• D)debit to Investment in Associates.

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Definitions:

Implied Agency

A type of agency relationship created by the actions of the parties involved, not by written agreement, where an agent is presumed to have authority to act on behalf of another.

Nonprogrammed Decision

A new, complex decision that requires a creative solution.

Programmed Decision

A simple, routine matter for which a manager has an established decision rule.

Nonprogrammed Decisions

Decisions made in response to unique, novel, or ill-structured situations that require creativity and judgment, as opposed to routine or standard procedures.