All of the Following Statements Regarding Accounting for Trading Securities

question 59

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 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)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:

Vestibular System

The sensory system responsible for providing our brain with information about motion, head position, and spatial orientation; it also aids in maintaining balance.

Vestibular System

The sensory system that contributes to balance and spatial orientation; it includes the parts of the inner ear and brain that process the sensory information involved with controlling balance and eye movements.

Maintain Balance

The ability of an organism to keep their body in equilibrium or stable, whether in motion or standing still.

Frequency

The rate at which something occurs over a particular period of time or in a given sample.