A Purchase of Common Stock of Blue Wave Corporation for $14,500

question 19

Multiple Choice

A purchase of common stock of Blue Wave Corporation for $14,500 was sold three months later for $15,000. The entry to record the sale would include a

• A) debit to Cash of $14,500.
• B) credit to Gain on Sale of Stock Investments of $500.
• C) credit to Stock Investments of $15,000.
• D) credit to Interest Revenue of $500.

---

Definitions:

Leading Question

A question that suggests the answer or contains the information the examiner is looking to have confirmed, typically disallowed on direct examination.

Intersection

A point at which two or more roads cross or intersect, or the act of intersecting.

Brakes

Mechanical devices or systems in vehicles designed to decrease or stop their motion by applying resistance.

Hypothetical Question

A question based on assumed or imagined circumstances, often used in legal contexts to explore possibilities or test theories.