All of the Following Statements Regarding Accounting for Trading Securities

question 59

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 fair value.
• B)An unrealized gain or loss from a change in fair value is reported on the income statement.
• C)A realized gain or loss is recorded when the securities are sold and reported on the income statement.
• D)When the period-end fair value adjustment for the portfolio of trading securities is computed,it includes the cost and fair value of any securities sold.
• E)Any prior period fair value adjustment to the portfolio is not used to compute the gain or loss from sale of individual transactions.

Understand the difference in overhead allocation between traditional costing and activity-based costing (ABC).

Calculate predetermined overhead rates using traditional costing methods.

Determine product costs under activity-based costing.

Compare unit product costs under traditional costing and activity-based costing.

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Definitions:

Similar Interests

Shared hobbies, preferences, or passions among individuals that often form the basis for relationships or social groupings.

Risky Sexual Behavior

Sexual activities that increase the likelihood of getting sexually transmitted infections (STIs) or resulting in unintended pregnancies.

Delinquent Activities

Behaviors contrary to the law or social norms, often committed by juveniles or young adults.

Lesbian

A woman who is emotionally, romantically, or sexually attracted to other women.