Deutsche Corporation's Trading Portfolio at the End of the Year

question 265

Multiple Choice

Deutsche Corporation's trading portfolio at the end of the year is as follows: The year-end adjusting entry to reflect a decrease in the value of stock trading securities includes a

• A) credit to Fair Value Adjustment-Trading.
• B) debit to Fair Value; Market Adjustment-Trading.
• C) debit to Unrealized Gain-Income.
• D) credit to Stock Investments.

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Definitions:

Contiguity

In psychology, contiguity refers to the closeness or proximity in time or space between two events or stimuli, often associated with classical conditioning.

Classical Conditioning

The phenomenon where a response, initially elicited by a second stimulus, is later elicited by the first stimulus alone, due to the repeated association of the two stimuli.

Fear

An emotional response to perceived threats, leading to avoidance or defensive behavior.

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.