All of the Following Statements Regarding Accounting for Trading Securities

question 81

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:

Seasonal Movement

The migration or movement of people or animals across different geographical areas depending on the season.

Transhumance

The seasonal movement of people with their livestock between fixed summer and winter pastures, often found in mountainous regions.

Nomadism

A lifestyle characterized by moving across landscapes in search of resources, such as pasture for livestock, rather than staying in one fixed location.

Semi-Sedentism

describes a way of life in which people regularly move within a certain area to exploit seasonal resources but also maintain some permanent or semi-permanent settlements.