Use the following information to answer questions
Wells Inc.reported these transactions relating to marketable Trading Investments intended to generate net income and to be sold in the near term:

-The entry to record the purchase of the Taylor shares on Feb 1 would include a
A)debit to Long-Term Trading 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 
Wells Inc.reported these transactions relating to marketable Trading Investments intended to generate net income and to be sold in the near term:
 
-The entry to record the purchase of the Taylor shares on Feb 1 would include a
A)debit to Long-Term Trading Investments. 
B)debit to Trading Investments. 
C)debit to Strategic Investments. 
D)debit to Investment in Associates.

Quizplus · Accepted Answer

The correct entry for purchasing shares intended for trading purposes is a debit to Trading Investments. This account reflects investments in securities that the company plans to buy and sell in the short term to generate profit from short-term price fluctuations.

Use the Following Information to Answer Questions