If a Trading Investment in Bonds Is Sold One Month

question 117

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.

---

Definitions:

Dreaded Disease

A term referring to a particularly feared illness or condition, often because of its severity, painfulness, or the lack of a cure.

Persistence

The sustained effort and determination to achieve goals despite obstacles, difficulties, or discouragement.

Effort

The amount of physical or mental energy exerted towards achieving a task, goal, or objective.

Direction

Guidance or instructions on how to perform a task or reach a destination.