Changes from Cost Are Reported as Part of Net Income

question 151

Multiple Choice

Changes from cost are reported as part of net income for

• A) available-for-sale securities.
• B) held-to-maturity securities.
• C) debt securities.
• D) trading securities.

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Definitions:

Contract

A contract is a legally binding agreement between two or more parties that outlines obligations each party must perform.

Indirectly

In a manner that is not straightforward or direct; happening through secondary or alternative means or effects.

Duties

Responsibilities or obligations that an individual, company, or government has under the law or contract.

Agency Agreement

A contract where one party (the agent) agrees to act on behalf of another (the principal) in business transactions.