Question
a. The required accounting for trading securities and for securities classified as available-for-sale differs with respect to the income statement but not with respect to
a. | The required accounting for trading securities and for securities classified as available-for-sale differs with respect to the income statement but not with respect to the balance sheet. |
b. | The unrealized gain or loss on trading securities appears in net income in the period when fair value changes occur. |
c. | The unrealized holding gain or loss on securities available-for-sale appears in other comprehensive income period by period, and its cumulative amount resides in the Accumulated Other Comprehensive Income account on the balance sheet. |
d. | Users of the financial statements should be alert to this accounting effect in evaluating the profitability of firms with both trading securities and securities available-for-sale. |
e. | all of the above |
Which is true???
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