All of the following statements regarding accounting for trading securities under U.S. GAAP are true except:
A. Any prior period fair value adjustment to the portfolio is not used to compute the gain or loss from sale of individual transactions.
B. 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.
C. A realized gain or loss is recorded when the securities are sold and reported on the income statement.
D. An unrealized gain or loss from a change in fair value is reported on the income statement.
E. The entire portfolio of trading securities is reported at fair value.
Answer: B
You might also like to view...
________ are data that were collected for another purpose and already exist
A) Primary data B) Secondary data C) Primitive data D) Cross-sectional data E) Ordinate data
When Rupert's Sandwich Shop received an invoice from Cozzini for $2,550 worth of boneless hams and turkey breasts, it included the following phrase: 1/10 net 30. If the meat was purchased on September 17 and the shop owner wants to pay the bill on September 30, how much should the owner make the check out for?
What will be an ideal response?
Integrated marketing communications is a program to coordinate all of the following marketing efforts EXCEPT
A. personal selling. B. advertising. C. sales promotion. D. word-of-mouth. E. production.
A party who has been induced to enter into an illegal contract because of fraud, duress, or
undue influence can sue the other party and recover whatever consideration he has paid. Indicate whether the statement is true or false