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:

Forum-Selection

A clause in a contract that designates the specific court, jurisdiction, or venue where disputes arising under the contract will be resolved.

Choice-Of-Language

A contractual provision specifying the language to be used in interpreting the terms of the contract.

Standard Of Care

The degree of attention, caution, and prudence that a reasonable person should exercise in a particular situation.

UCC

For all commercial interactions within the United States, the Uniform Commercial Code (UCC) provides a fully detailed legislative framework.