FINANCIAL+MANG.-W/ACCESS  PRACTICE SET
FINANCIAL+MANG.-W/ACCESS PRACTICE SET
13th Edition
ISBN: 9781337575614
Author: WARREN
Publisher: CENGAGE L
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Chapter 13, Problem 6DQ
To determine

Trading securities:

These are short-term investments in debt and equity securities with an intention of trading and earning profits due to changes in market prices.

Available-for-sale securities:

These are short-term or long-term investments in debt and equity securities with an intention of holding the investment for some strategic purposes like meeting liquidity needs, or manage interest risk.

To describe: The primary difference in accounting of trading and available-for-sale securities.

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