Where Are Changes in Fair Value for Trading Debt Securities

question 83

Multiple Choice

Where are changes in fair value for trading debt securities reported?

• A) as operating income or loss on the income statement
• B) as income or loss from peripheral activities on the income statement
• C) as a component of accumulated other comprehensive income on the balance sheet
• D) as a prior period adjustment to retained earnings on the balance sheet

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Definitions:

Solve

The method of identifying a solution or resolution for a mathematical equation or problem.

Inequality

A mathematical statement illustrating the relationship between two expressions that are not equal, using symbols such as <, >, ≤, or ≥.

Absolute Value

The distance of a number from zero on the number line, regardless of direction; denoted by |x|.

Equation

A mathematical declaration that affirms two expressions, usually containing variables, are equal.