The Year-End Adjusting Entry to Reflect an Increase in the Value

question 127

Multiple Choice

The year-end adjusting entry to reflect an increase in the value of trading securities includes a

• A) debit to Unrealized Gain on Investments.
• B) debit to Short-Term Investments.
• C) debit to Allowance to Adjust Short-Term Investments to Market.
• D) credit to Realized Gain on Investments.

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Definitions:

Capacity

The maximum level of output that a company can sustain to make a product or provide a service under normal conditions.