Question

If the combined market value of trading securities at the end of the year is less than the market value of the same portfolio of trading securities at the beginning of the year, the difference should be accounted for by?

Answer 1

If the combined market value of trading securities at the end of the year is less than the market value at the beginning of the year, the difference should be accounted for by a decrease in the value of the securities. This could be due to changes in market conditions, company performance, or investor sentiment.

Step-by-step explanation:

If the combined market value of trading securities at the end of the year is less than the market value of the same portfolio of trading securities at the beginning of the year, the difference should be accounted for by a decrease in the value of the securities. This decrease could be due to various factors such as changes in market conditions, company performance, or investor sentiment.

For example, if a company owns stocks as trading securities and the market value of those stocks declines during the year, the difference between the beginning and ending market values would represent a decrease in value. This decrease would be reflected in the company's financial statements as a loss on trading securities.

Answer 2

If the combined market value of trading securities at the end of the year is less than the market value at the beginning of the year, the difference should be accounted for by a decrease in value. This decrease may be due to various factors, such as changes in market conditions or the performance of the underlying assets.

Step-by-step explanation:

If the combined market value of trading securities at the end of the year is less than the market value of the same portfolio of trading securities at the beginning of the year, the difference should be accounted for by a decrease in value. This decrease may be due to various factors, such as changes in market conditions, changes in the performance of the underlying assets, or changes in investor sentiment.

For example, let's say a portfolio of trading securities had a market value of $100,000 at the beginning of the year and $80,000 at the end of the year. The difference of $20,000 would be accounted for as a decrease in value. This decrease could be caused by factors such as a decline in the stock market or poor performance of specific stocks within the portfolio.

Investors need to monitor the performance of their trading securities and make informed decisions based on market conditions and the performance of the underlying assets.