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At the Beginning of the Year a Company Had a Debit

Question 4

Multiple Choice

At the beginning of the year a company had a debit balance in the account Market Adjustment--Trading Securities.During the year the company did not buy or sell any trading securities,but at the end of the year the related market adjustment account had a credit balance.This change indicates that


A) a loss on the income statement was recognized.
B) a gain on the income statement was recognized.
C) the value of the investment account increased.
D) the value of the investment account decreased.

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