Question

Which of the following statements is true about investments categorized as trading securities? a. They are...

Which of the following statements is true about investments categorized as trading securities?

a. They are valued on the balance sheet at cost

. b. They can consist of debt, but not equity, securities.

c. They are purchased to be held to maturity.

d. Changes in market value are reflected in net income.

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Homework Answers

Answer #1

Investment that categorized as trading securities are:

1) Valued at the current fair market value

2) Purchased with a intention of sell in short term & to book a gain from that

3) can consist of equity, debt & other money market instruments.

4) Changes in there market value are to be adjusted in net income.

Hence Option D is correct

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