All of the Following Statements Regarding Accounting for Trading Debt

question 153

Multiple Choice

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

• A)The entire portfolio of trading securities is reported at fair value.
• B)An unrealized gain or loss from a change in fair value is reported in 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 each period.

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Definitions:

Syntax

The set of rules, principles, and processes that govern the structure of sentences in a given language, specifically the arrangement of words and phrases.

Phrase

A group of words that express a concept and can function as a unit within a sentence, lacking a subject and predicate to form a complete thought.

Hierarchical Structure

An organizational system where entities are arranged in a ranked or graded fashion, from the highest to the lowest levels.

Morphemes

Morphemes are the smallest grammatical units in a language, capable of conveying meaning, such as "un-", "-ing", or "cat".