All of the Following Statements Regarding Accounting for Noninfluential Securities

question 117

Multiple Choice

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

• A)Trading securities are accounted for using fair values with unrealized gains and losses reported in other comprehensive income.
• B)Trading securities are accounted for using fair values with unrealized gains and losses reported in net income.
• C)Available-for-sale securities are accounted for using fair values with unrealized gains and losses reported in other comprehensive income.
• D)Held-to-maturity securities are accounted for using amortized cost.
• E)Both systems examine held-to-maturity securities for impairment.

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Definitions:

Measure

A method or tool used to assess, quantify, or evaluate something, often used in analyzing performance or outcomes.

Short-lived

Lasting for only a brief period.

Emotions

Complex psychological states involving physiological arousal, expressive behaviors, and conscious experience.

Outgroup

A group of people perceived as distinctly different from or outside of one's own in-group, often leading to biases or discrimination.