Interest and Dividends Earned During the Period Are Reported on the Income

question 66

Multiple Choice

Interest and dividends earned during the period are reported on the income statement for which kind of marketable securities?

• A) Trading securities
• B) Available-for-sale securities
• C) Held-to-maturity securities
• D) All types of securities show interest and dividend income on the income statement.
• E) Trading securities and available-for-sale securities

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Definitions:

Physical Flow

The movement of physical goods through a production process or supply chain.

FIFO Inventory

A rephrased definition: A method to manage and value inventory assuming the first items purchased are the first to leave the warehouse.

Cost of Goods Sold

Direct expenditures associated with producing the items a company offers for sale.

Weighted Average

A calculation that takes into account the differing degrees of importance of the numbers in a data set.