Which of the following is NOT correct regarding trading securities *   a. Unrealized holding gains or losses are reported in profit or loss b. Share in profit of the investee increases carrying value of the investment c. These are classified as current assets. d. Cash dividends shall be recognized as dividend income

Q: One of the primary reasons for investing in equity securities includes a. Receiving dividend…

A: Investments refers to the process of using the currently held excess cash to earn profitable returns…

Q: none of the choices?

A: IFRS 9-:IFRS 9 is simply an International Financial Reporting Standard circulated by the…

Q: s not useful for analyzing changes in financial state s useful in analyzing relationships within a…

A: Vertical analysis of financial statements is a where each line item is expressed as a percentage…

Q: Where are changes in the fair value of equity securities and reported? These fair values are readily…

A: In case of, available-for-sale securities are reported at fair value; changes in value between…

Q: Which of the following statements is not true of the fair-value method of accounting for marketable…

A: Fair value: Fair value is the price at which, both seller and buyer agree to exchange the asset. So,…

Q: Unrealized holding gains and losses on debt securities classified as available for sale would have…

A: Other Comprehensive Income refers to items of income and expenses that are not recognized as a part…

Q: For fi nancial assets classifi ed as trading securities, how are unrealized gains and lossesrefl…

A: Trading securities are debt or equity assets that management expects to aggressively sell for gain…

Q: For fi nancial assets classifi ed as trading securities, how are unrealized gains and losses refl…

A: Trading securities are debt or equity assets that management expects to aggressively sell for gain…

Q: Dividend revenue is recognized for trading securities and available for sale securities even if held…

A: Solution Concept Dividend is recognized in income statement for trading securities if they are held…

Q: Comprehensive income includes the following except: A. revenues and gains B. expense and loss C.…

A: Comprehensive income  : Comprehensive income is the income of business which is the variation of…

Q: When holding held-to-maturity securities, a company should disclose at each balance sheet date the…

A: We shall answer the first question since the exact question wasn't specified. Please resubmit a new…

Q: Which one or more of the following would you not include within the heading Equity and Reserves in a…

A: Equity and reserves that are shown under statement of financial position means all amount…

Q: Lifo and weighted average methods are related to?

A: Answer:  A. Inventory valuation

Q: Which of the following may not affect retained earnings or earned capital? O Correction of prior…

A: Profit and loss for the period and correction of prior period error may affect the retained…

Q: e element in the accumulated other comprehensive income section of shareholders' equity. is reported…

A: Available-for-sale securities are debt or equity investments purchased with an intent to sell them…

Q: For fi nancial assets classifi ed as trading securities, how are unrealized gains and losses refl…

A: Financial assets classified as trading securities can be defined as the assets which can be realized…

Q: Which of the following item does not appear under the head ‘Reserves and Surplus’ in Balance Sheet…

A: Dividend means the amount given to shareholder of the company as profit distribution by company.…

Q: 1. Investments in debt and equity securities that are held for current resale by banks and…

A: Banks and stock brokerage firms normally deals in purchase and sale of securities. This purchase and…

Q: For accounting purposes, the method used to account for investments in common stock is determined…

A: If a firm invests in common stock (Equity) then, Required, For the purpose of its Accounting, the…

Q: Trading securities, by definition, are properly classified in the statement of financial position…

A: Statement of financial position is also known as balance sheet, which is prepared at the year-end to…

Q: Which statement is not true?

A: In the above question, there are four statements; we must identify which of the four statements is…

Q: Which of the following is not a defining feature of common stock? a residual claim on assets voting…

A: Common stock: The common stock is considered as a security that signifies proprietorship in a…

Q: Share Capital and Retained Earnings are Equity accounts. Select one: True False

A: Owner equity means the amount that belong to the owner of the business.  Any profit will increase…

Q: When the market value of a company’s portfolio of available-for-sale securities is lower than its…

A: Valuation allowance account - Contra asset to record "temporary" market changes in FV for HFT/AFS…

Q: Which of the following is not a financing activity: O Issuance of bonds payable O Sale of investment…

A: Introduction: Statement of cash flows: All cash in and out flows are recorded in statement of cash…

Q: Both stock and bond returns are based on the cash flows generated by the issuing firm. How do…

A: Shareholders : In simple words, the shareholders of the company refers to the equity stakeholders of…

Q: Which of the following statements is false? a. the common stock account has a credit balance. b. the…

A:

Q: An important element in accounting for investment securities concerns the distinction between its…

A: Investment securities are those that are acquired with the intention of investing in the future. It…

Q: The cost of retained earnings is less than the cost of ordinary shares because of *

A: Issuance cost: This is incremental cost directly associated with issue of ordinary shares. This cost…

Q: Why are unrealized gains and losses on trading securities reported in the incomestatement?

A: Unrealized gains and losses: Trading securities are reported at their fair values. Unrealized gains…

Q: The journal entry to record the sale of treasury stock might include a.a credit to Treasury Stock.…

A: Treasury stock indicates the amount of stock repurchased by the company from the stockholders. It is…

Q: An auditor’s analytical procedures indicate a lower than expected return on an equity method…

A:

Q: A statement of comprehensive income includes: • Net income. • Gains and losses on unsold equity…

A: Income statement: The income statement is one of the three primary financial statements used to…

Q: 3. Which of the following categories of investments are reported at their fair values on the balance…

A: A security is a financial mechanism tool issued by a company or government that grants the customer…

Q: Why are unrealized gains and losses on available-for-sale securities not reported in theincome…

A: Definition: Generally Accepted Accounting Principle (GAAP): Generally Accepted Accounting Principle…

Q: Which statement best describes a possible result of treasury shares transactions? * May increase but…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: If a company has trading securities, it will report unrealized changes in their value only when…

A: Trading Securities:- Trading securities are investments in debt or equity that management plans to…

Q: Changes in the fair value of held to maturity securities are: A. not recognized. B. recognized on…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: Which of the following is not a method that may be used to account for treasury shares? a. Cost…

A: The treasury shares are the shares which are reacquired by the issuing company from the…

Q: In subsequent periods after purchase, investments in available-for-sale securities will be reported…

A: Since we answer only one question, we will answer the first question. Please resubmit the other…

Q: . Unrealized gains and losses on investments in trading securities are reported a. as a current…

A: Trading securities are securities that can be sold immediately in the open market. These securities…

Q: Undeclared cash dividends in noncumulative preference shares are: * O Recognized as liabilities…

A: 1. Non Cumulative Preference Shares - Non cumulative preference shares are those shares that provide…

Q: Property or services received in exchange for capital stock should be recorded at the par or stated…

A: Capital stock of the company can be issued for cash or in exchange of assets or services. When…