Asked by Dekia Mitchell on May 10, 2024
Verified
All of the following statements regarding accounting for trading debt 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 in 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 each period.
Unrealized Gain
The paper profit attributed to an investment that has increased in value but has not yet been sold by the investor.
Trading Debt Securities
The act of buying and selling debt instruments, such as bonds or debentures, often for short-term profit.
Income Statement
A financial statement that reports a company's financial performance over a specific accounting period, detailing income and expenses.
- Familiarize oneself with the accounting practices for dealing with realized and unrealized gains or losses pertaining to diverse securities.
Verified Answer
Learning Objectives
- Familiarize oneself with the accounting practices for dealing with realized and unrealized gains or losses pertaining to diverse securities.
Related questions
At December 31 2017 the Available-For-Sale Securities for Allison Inc ...
The Following Information Is Available for Lewis Corporation's Available-For-Sale Securities ...
An Unrealized Loss on Trading Securities Is Reported Under Other ...
Plotner Corporation Has the Following Trading Portfolio of Stock Investments ...
Shallot Company Has the Following Data at December 31 2017 ...