Stock Categorized as Trading Securities Is Purchased for $72,000

question 47

Multiple Choice

Stock categorized as trading securities is purchased for $72,000.At year end,when the market value of the stock is $63,000,the adjusting entry that would be recorded is:

• A)Allowance to Adjust Short-Term Investments to Market 9,000 Unrealized Loss on 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 Loss on Investments 9,000 Short-Term Investments 9,000

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Definitions:

Morphine

A potent opiate analgesic derived from the opium poppy, used medically to relieve severe pain.

Heroin

Heroin is an opioid drug synthesized from morphine that is illegal and has high potential for addiction and dependence.

Opiates

A group of drugs, derived from opium, used for their analgesic (pain relief) properties, but which also have a high potential for addiction.

Serotonin

A neurotransmitter that plays a crucial role in mood regulation, appetite control, and sleep, among other bodily functions.