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.

---

Definitions:

Interchangeable

Capable of being used in place of each other; mutually substitutable.

Visuals

Images, diagrams, charts, and other graphical elements used in documents or presentations to illustrate, clarify, or add interest to the information being conveyed.

Rough Draft

A Rough Draft is an early version of a written document, used for brainstorming and organizing ideas before producing a final version.

Compactly

In a manner that uses space efficiently, often referring to the concise and effective arrangement of information or objects.