Use the following information to answer questions
Lacey Inc. reported these transactions relating to marketable trading investments intended to generate profits and to be sold in the near term:
-The entry to record the purchase of the Cagney shares on Feb. 1 would include a
A)debit to Available-for-Sale Investments.
B)debit to Trading Investments.
C)debit to Strategic Investments.
D)debit to Investment in Associates.

Question

Use the following information to answer questions 
Lacey Inc. reported these transactions relating to marketable trading investments intended to generate profits and to be sold in the near term: 
-The entry to record the purchase of the Cagney shares on Feb. 1 would include a
A)debit to Available-for-Sale Investments. 
B)debit to Trading Investments. 
C)debit to Strategic Investments. 
D)debit to Investment in Associates.

Quizplus · Accepted Answer

The description states that the investments were intended to be sold in the near term, which indicates that they are considered trading investments. Therefore, the entry to record the purchase of the Cagney shares should include a debit to Trading Investments.

Use the Following Information to Answer Questions