Unrealized Holding Gains and Losses on Trading Securities Are Included

question 150

Multiple Choice

Unrealized 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.

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Definitions:

Notorious Liar

A person who is widely known for their persistent dishonesty or deception.

Argument

A set of statements where one or more premises are used to provide support for a conclusion.

Appeal to Authority

A logical fallacy where the conclusion is justified by citing an authoritative or perceived authoritative figure who mentioned it.

Non-expert

An individual who lacks specialized knowledge or expertise in a particular area or field.