Which of the Following Is a True Statement About the Accounting

question 62

Multiple Choice

Which of the following is a true statement about the accounting for trading investments 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:

Standard Error

A measure that indicates the standard deviation of the sampling distribution of a statistic, most commonly of the mean.

Infinite Population

A concept in statistics referring to a population size that is so large it is considered boundless for practical purposes.

Standard Deviation

A measure of the dispersion or variability within a set of data points, indicating how much the values deviate from the mean of the set.

Infinite Population

A hypothetical population of unlimited size, often used in statistical models to simplify calculations.