All of the Following Statements Regarding Accounting for Trading Securities

question 8

Multiple Choice

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

• A)The entire portfolio of trading securities is reported at is fair value.
• B)An unrealized gain or loss from a change in fair value is reported on the income statement.
• C)A realized gain or loss is recorded when the securities are sold and reported on the income statement.
• D)When the period-end fair value adjustment for the portfolio of trading securities is computed, it includes the cost and fair value of any securities sold.
• E)When the period-end fair value adjustment for the portfolio of trading securities is computed, it excludes the cost and fair value of any securities sold.

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Definitions:

Interdependence

The mutual reliance between two or more groups, organisms, or systems for benefits or survival.

Direct Competition

Refers to the rivalry between businesses that offer the same or similar products or services to the same customer base.

Systematic Processes

Methodical and organized procedures or methods followed to achieve specific goals.

Organized Approaches

Systematic methods or strategies applied to achieve goals in an orderly and efficient manner.