Which of the Following Is a True Statement About the Accounting

question 254

Multiple Choice

Which of the following is a true statement about the accounting for investments held for trading under IFRS?

• A) The investment is initially recorded at fair value.
• B) Gains and losses are recorded in OCI when the market value is different from the purchase price.
• C) The accounting for trading investments is the same as the accounting for short-term investments in debt instruments purchased to earn interest.
• D) The investment is initially recorded at face value.

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Definitions:

Marble-Sized

Describes an object or mass that is about the same size as a marble, indicating a small, round shape approximately 1/2 inch to 1 inch in diameter.

Coxal Bone

Another term for the hip bone, comprising the ilium, ischium, and pubis, that forms part of the pelvis.

Pelvic Girdle

The ring of bones in the lower torso, comprised of the two hip bones, sacrum, and coccyx, providing support for the human body's weight.

Axial Skeleton

The axial skeleton is the part of the skeleton that consists of the bones of the head and trunk of a vertebrate, including the skull, spine, sternum, and ribs.