N4 Trading securities are:O reported at fair value on the balance sheet and as unrealized gains or losses on theincome statement.not reported on the balance sheet.O reported at fair value in the balance sheet.O reported as unrealized gains or losses on the income statement.Question 26Changes in the value of available-for-sale securities are:O not recognized.O reported as part of stockholders' equity.O recognized on the income statement.O recognized on the income statement and as part of stockholders' equity.

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Trading securities are: O reported at fair value on the balance sheet and as unrealized gains or losses on the income statement. O not reported on the balance sheet. O reported at fair value in the balance sheet. O reported as unrealized gains or losses on the income statement.

Trading securities are: O reported at fair value on the balance sheet and as unrealized gains or losses on the income statement. O not reported on the balance sheet. O reported at fair value in the balance sheet. O reported as unrealized gains or losses on the income statement.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter13: Marketable Securities And Derivatives

Section: Chapter Questions

Problem 3Q

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Question

Trading securities are:
O reported at fair value on the balance sheet and as unrealized gains or losses on the
income statement.
not reported on the balance sheet.
O reported at fair value in the balance sheet.
O reported as unrealized gains or losses on the income statement.
Question 26
Changes in the value of available-for-sale securities are:
O not recognized.
O reported as part of stockholders' equity.
O recognized on the income statement.
O recognized on the income statement and as part of stockholders' equity.

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Changes in the fair value of held to maturity securities are: A. not recognized. B. recognized on the income statement and as part of stockholders' equity. C. reported as part of stockholders' equity. D. recognized on the income statement.
6. Unrealized gains and losses on investments in trading securities are reported a. as a current assetb. on the income statementc. on the balance sheet as part of stockholders' equityd. as a contra asset
All of the following statements are true regarding available-for-sale securities except a.changes in their fair values are not recognized on the income statement. b.they are recorded at fair value. c.a valuation allowance account is not used with available-for-sale securities. d.changes in their fair values are included as part of stockholders' equity.
choose the correct answer: 1. Trading securities are held with the intention of being sold in a short period of time 2. Trading securities unrealized holding gains or losses are reported in profit or loss. a. Only the first statement is correct. b. Only the second statement is correct. c. Both statements are correct. d. Both statements are incorrect.
All equity securities and investments in debt securities that are intended to be sold in the near term are classified as held-to-maturity securities. trading securities. available-for-sale securities. none of these choices. 2. Any change in the fair value of trading securities is reported on the income statement as part of net income. reported as part of other comprehensive income in the shareholders' equity section of the balance sheet. ignored; only the amortized cost is reflected in the financial statements. reported as a cash outflow in the investing activities section of the statement of cash flows. 3. A minority active investment with significant influence occurs when the investor owns between 10% and 20% of the voting common stock of the investee. over 50% of the voting common stock of the investee. between 20% and 50% of the voting common stock of the investee. over 50% of the preferred stock of the investee.
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Please explain in detail
For fi nancial assets classifi ed as trading securities, how are unrealized gains and losses refl ected in shareholders’ equity? B . Th ey fl ow through income into retained earnings.
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13 Which of the following is not correct in regard to trading securities a. they are held with the intention of selling them in a short period of time b. unrealized gain/loss are reported as part of net income c. Any premium or discount is not amortized d. all these statements are correct
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