All of the Following Statements Regarding Accounting for Noninfluential Securities

question 177

Multiple Choice

All of the following statements regarding accounting for noninfluential securities under U.S. GAAP and IFRS are true except:

• A) Trading securities are accounted for using fair values with unrealized gains and losses reported in other comprehensive income.
• B) Both systems examine held-to-maturity securities for impairment.
• C) Held-to-maturity securities are accounted for using amortized cost.
• D) Available-for-sale securities are accounted for using fair values with unrealized gains and losses reported in other comprehensive income.
• E) Trading securities are accounted for using fair values with unrealized gains and losses reported in net income.

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Definitions:

Sole Proprietorship

An unincorporated firm owned and operated by one person.

Money Income

It refers to the total amount of monetary earnings received by an individual or household, including wages, salaries, and other forms of financial income.

Revenues

The sum of money a business acquires from selling goods or offering services over a certain time frame.

Households

Economic units that represent all individuals living in a single dwelling, sharing income and expenses; primary consumers in the economy.