Matthew Company Purchases a Trading Security for $12,000 Cash

question 187

Multiple Choice

Matthew Company purchases a trading security for $12,000 cash.The journal entry to record this transaction will include a:

• A)debit to the Investment in Trading Securities account and a credit to Cash.
• B)debit to Cash and a credit to the Investment in Trading Securities account.
• C)debit to Long-term Investment and credit Cash.
• D)debit to Dividend Revenue and credit to Cash.

Understand the concept and importance of unity of command in organizational structure.

Distinguish between line and staff units within an organization.

Comprehend the hierarchy of authority and its significance in organizing work positions.

Recognize the role of process controls in organizational management.

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Definitions:

Eminent Domain

The power of a government to take land for public use from private citizens for just compensation.

Just Compensation

The fair payment required to be made to an individual when their property is taken for public use, as guaranteed by the Constitution.

Zoning Rights

Legal permissions dictating the use of land in specific areas according to designated categories such as residential, commercial, or industrial.

Real Property

Land and anything permanently attached to it, such as buildings or trees.