All of the Following Statements Regarding Accounting for Trading Securities

question 17

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)An unrealized gain or loss is recorded with an adjusting entry when the securities are sold.
• D)An unrealized gain or loss is recorded with an adjusting entry at the end of each period.
• E)Unrealized gains and losses are recorded in a temporary account that is closed to Income Summary at the end of the period.

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Definitions:

Arterial Blood Sample

A sample of blood taken from an artery that is often used to measure gases, such as oxygen and carbon dioxide, in the blood.

Acid-Base Balance

The mechanism by which the body maintains its blood pH within the narrow range necessary for optimal enzyme function and metabolic processes.

Body Fluids

Liquids within the bodies of living people or animals, such as blood, urine, and saliva, that carry out various functions.

Hormone Levels

Concentrations of hormones in the body, which can affect a wide range of bodily functions from growth to mood regulation.