All of the Following Statements Regarding Accounting for Trading Securities

question 17

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 is fair value.
• B)An unrealized gain or loss from a change in fair value is reported on the income statement.
• C)An unrealized gain or loss is recorded with an adjusting entry when the securities are sold.
• D)An unrealized gain or loss is recorded with an adjusting entry at the end of each period.
• E)Unrealized gains and losses are recorded in a temporary account that is closed to Income Summary at the end of the period.

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Definitions:

MMPI

The Minnesota Multiphasic Personality Inventory, a comprehensive psychological test used to assess personality traits and psychopathology.

16PF

The 16 Personality Factors (16PF) questionnaire is a self-report assessment tool developed by Raymond Cattell to measure the primary traits of human personality in psychological and vocational settings.

Psychic Determinism

The theory that all mental processes are not spontaneous but are determined by the unconscious or pre-existing mental complexes.

Rorschach

A psychological test in which subjects' perceptions of inkblots are recorded and then analyzed using psychological interpretation, complex algorithms, or both, often used to examine a person's personality characteristics and emotional functioning.