All of the Following Statements Regarding Accounting for Trading Debt

question 123

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)A realized gain or loss is recorded when the securities are sold and reported in 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)Any prior period fair value adjustment to the portfolio is not used to compute the gain or loss from sale of individual transactions.

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Definitions:

Functional Enzymes

Proteins that act as catalysts for biochemical reactions within living organisms, maintaining the body's metabolism.

Transformation

The incorporation of genetic material into a cell, thereby changing its phenotype. The conversion of a normal cell to a cancer cell (called a malignant transformation).

Plasmids

Small, circular, double-stranded DNA molecules found in bacteria and some yeasts that can replicate independently of chromosomal DNA.

Bacterial Cells

Single-celled microorganisms that lack a distinct nucleus and are found everywhere in nature, with roles from fermentation to causing diseases.