All of the Following Statements Regarding Accounting for Trading Securities

question 146

Multiple Choice

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

• A) Unrealized gains and losses are recorded in a temporary account that is closed to Income Summary at the end of the period.
• B) The entire portfolio of trading securities is reported at is fair value.
• C) An unrealized gain or loss is recorded with an adjusting entry when the securities are sold.
• D) An unrealized gain or loss from a change in fair value is reported on the income statement.
• E) An unrealized gain or loss is recorded with an adjusting entry at the end of each period.

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Definitions:

Karma

In several Eastern religions, the concept that good or bad actions in this life can determine the nature of one's future lives or fate.

Hierarchical System

A structure where individuals or entities are ranked one above the other according to status or authority.

Ordered Universe

An ordered universe is a concept proposing that the universe is structured in a logical and systematic way, followable through scientific and philosophical inquiry.

Demographics

Statistical data relating to particular populations, especially those concerning individuals' characteristics such as age, race, gender, income, and education.