If a Trading Investment in Bonds Is Sold One Month

question 84

Multiple Choice

If a trading investment in bonds is sold one month after its value was adjusted at year end, the investment account is

• A)debited for the carrying amount of the bonds at the sale date.
• B)credited for the cost of the bonds at the sale date.
• C)credited for the carrying amount of the bonds at the sale date.
• D)debited for the cost of the bonds at the sale date.

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Definitions:

Prediction Interval

A range of values within which a future observation is expected to fall, with a certain probability.

Confidence Interval

A spread of values obtained from statistical scrutiny of samples, presumed to potentially contain the value of an undetermined population parameter.

Confidence Interval Estimate

An interval of values calculated from a sample that is expected to include the value of an unseen population parameter, with a certain degree of confidence.

Prediction Interval

An estimate of an interval in which future observations will fall, with a certain probability, given what has already been observed.