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

---

Definitions:

Real Number Line

A line that depicts all possible real numbers in a ordered, one-dimensional continuum, with every point on the line corresponding to a real number.

Real Number

Any value that represents a continuous quantity along a line, including both rational and irrational numbers.

True Inequality

A statement of inequality that is valid for the values it involves.

Real Number Line

A line that graphically represents all possible real numbers, both positive and negative, including integers and fractions.