Trading Securities Purchased for $400,000 Were Valued at $410,000 at the End

question 21

Multiple Choice

Trading securities purchased for $400,000 were valued at $410,000 at the end of the year. The adjusting entry to record this difference included a credit to:

• A)Retained Earnings.
• B)Unrealized Gain on Investments.
• C)Short-term Investments.
• D)none of the accounts. No adjusting entry is required.

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Definitions:

Belief Perseverance

The tendency to maintain one's convictions even in the face of contradictory evidence.

Availability Heuristic

A psychological shortcut made by referencing the initial instances that pop into an individual's head when considering a certain theme, notion, approach, or decision-making process.

Confirmation Bias

An inclination towards sourcing, understanding, valuing, and recollecting insights that reinforce one's standing beliefs or presumptions.

Older Workers

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