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.

---

Definitions:

Upper Control Limit

The highest value on a control chart that signals the process is still in control or within predetermined bounds.

Sample Proportion

The fraction or percentage of items in a sample that are part of a particular category, representing a snapshot of that category in the larger population.

Random Variation

The unpredictable fluctuation in data points that results from a multitude of unspecified factors.

Process Control Charts

Graphical displays used to monitor the stability and performance of a process over time by plotting various statistics.