Answer the following statements true (T) or false (F)
1. Trading securities are always reported as current assets.
2. Unrealized gains and losses on trading securities are reported on the income statement.
3. Held-to-maturity securities are equity securities a company intends and is able to hold until
maturity.
4. Investments in held-to-maturity debt securities are always current assets.
5. Accounting for long-term investments in held-to-maturity securities requires companies to
record interest revenue as it is earned.
1. TRUE
2. TRUE
3. FALSE
4. FALSE
5. TRUE
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