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:

Disability Income

Financial compensation provided to individuals who are unable to work due to a disability.

Probate

The process of "proving" the validity of a will and ensuring that the instructions in a valid will are carried out.

Will

A document directing how and to whom the maker’s property and obligations are to be transferred on his or her death.

Validity

The quality of being logically or legally sound; in legal documents, it refers to the document's enforceability and compliance with the law.