Holding Gains and Losses on Trading Securities Are Included in Earnings

question 24

Multiple Choice

Holding gains and losses on trading securities are included in earnings because:

• A)They measure the success or failure of taking advantage of short-term price changes.
• B)The IRS mandates the inclusion.
• C)The SEC mandates the inclusion.
• D)They measure the book value of the securities in the balance sheet date.

---

Definitions:

Facebook

A social media platform that allows users to connect with friends and family, share content, and join groups.

Symbolic Interactionists

Sociologists who study how individuals create and understand societal norms through interactions and symbols.

Objective Reality

Objective reality refers to the existence of an external and independent reality that remains constant regardless of individual perceptions or beliefs.

Preindustrial Societies

Societies characterized by limited technological advancement and economies based on subsistence farming or hunting and gathering.