When a Trading Debt Investment Is Disposed Of,________

question 159

Multiple Choice

When a trading debt investment is disposed of,________.

• A) an unrealized holding loss is reported on the income statement
• B) the Trading Debt Investments account is debited
• C) the amount of gain or loss is calculated as the difference between the cash received and the cost of the debt investment disposed of.
• D) the fair value adjustment is used in determining the calculation of the gain or loss

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Definitions:

Salespersons

Individuals who sell products or services, often working on commission and focusing on meeting sales targets.

Administrative Office

A physical or virtual location where administrative and managerial tasks of an organization are carried out, including paperwork, planning, and coordination activities.

Salaries

Regular payments made by employers to employees, usually monthly, for their professional services.

Indirect

In accounting and finance, refers to costs or expenses that are not directly tied to a specific product, service, or department but are necessary for business operations.