Stock Categorized as Trading Securities Is Purchased for $52,000

question 40

Multiple Choice

Stock categorized as trading securities is purchased for $52,000.At year end,when the market value of the stock is $61,000,the adjusting entry that would be recorded is:

• A)Allowance to Adjust Short-Term Investments to Market 9,000 Unrealized Gain on Short-Term Investments 9,000
• B)Unrealized Loss on Short-Term Investments 9,000 Allowance to Adjust Short-Term Investments to Market 9,000
• C)Allowance to Adjust Short-Term Investments to Market 9,000 Short-Term Investments 9,000
• D)Realized Gain on Investments 9,000 Short-Term Investments 9,000

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Definitions:

IF Function

A logical function in programming and spreadsheet software that returns one value if a condition is true and another value if it's false.

Logical Test

An evaluation in programming and spreadsheet formulas that returns TRUE or FALSE based on a specific condition.

Sparkline Chart

A mini-chart embedded within a cell in a spreadsheet to show a visual summary or trend.

Absolute Cell Reference

In spreadsheet applications, a cell reference that remains constant even if the formula is copied to a different location.