Yankton Company Began the Year Without an Investment Portfolio

question 49

Multiple Choice

Yankton Company began the year without an investment portfolio. During the year they purchased investments classified as trading securities at a cost of $13,000. At the end of the year, the market value of the securities was $11,000. The Yankton Company's financial statements for the current year should show

• A) a loss of $2,000 on the income statement and net trading securities of $13,000 on the balance sheet
• B) no loss on the income statement and net trading securities of $13,000 on the balance sheet
• C) no loss on the income statement, net trading securities of $11,000 and an unrealized loss of $2,000 as a stockholders' equity adjustment on the balance sheet
• D) a loss of $2,000 on the income statement and temporary investments of $11,000 on the balance sheet

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Definitions:

Supervise

To observe and direct the execution of a task, project, or activity, ensuring standards are met.

Intolerant

Showing an unwillingness or inability to accept and respect differing opinions or beliefs.

Visual-spatial Ability

The capacity to understand, reason, and remember the spatial relations among objects or space.

Verbal Ability

The capacity to use and understand language effectively, encompassing both spoken and written forms.