At the beginning of the year a company had a debit balance in the account Market

Question

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

Explanation / Answer

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

When company use market adjustment account then investment account will not increase or decrease and changes in value of trading securities shows gain or loss in income statement

So answer is B)  a loss on the income statement was recognized

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