Questions
Introduction to Financial Accounting M4: Quiz
Single choice
Trading securities purchased in October 20X1 for $85,000 were valued at $80,000 on December 31, 20X1. The securities were sold at the beginning of 20X2 for $83,000. The 20X1 year-end balance sheet should report trading securities as:
Options
A.of 0.
B.of $85,000.
C.of $80,000.
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Question: Trading securities purchased in October 20X1 for $85,000 were valued at $80,000 on December 31, 20X1. The securities were sold at the beginning of 20X2 for $83,000. The 20X1 year-end balance sheet should report trading securities as:
Answer options:
- of 0.
- of $85,000.
- of $80,000.
Now, analyze each option in light of trading securities accounting rules on the balance sheet date.
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