All of the Following Statements Regarding Accounting for Trading Securities

question 17

Multiple Choice

All of the following statements regarding accounting for trading securities under U.S.GAAP are true except:

• A)The entire portfolio of trading securities is reported at is fair value.
• B)An unrealized gain or loss from a change in fair value is reported on the income statement.
• C)An unrealized gain or loss is recorded with an adjusting entry when the securities are sold.
• D)An unrealized gain or loss is recorded with an adjusting entry at the end of each period.
• E)Unrealized gains and losses are recorded in a temporary account that is closed to Income Summary at the end of the period.

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Definitions:

Frequency Rating

A measurement of how often something occurs within a specified period.

Graphic Rating Scale

A method for assessing performance that involves marking an individual's level of achievement along a linear scale.

360-degree Feedback

A performance appraisal method where employees receive confidential, anonymous feedback from the people who work around them, including peers, managers, and direct reports.

Perceptual Errors

Mistakes in judgment or interpretation made due to the subjective nature of perception.