Gain or loss on the reclassification date c

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: d immediately recognize in net income any unrealized . gain or loss on the reclassification date. C Reclassify the investment as held to maturity and treat the fair value as of the date of reclassification as . the investment's amortized cost basis for future amortization. D. Need to restate earnings, as the original classification was in error. 38. Securities that are purchased with the intent of selling them in the near future to take advantage of shortterm price changes are classified as: A. Securities available for sale. B. Consolidating securities. C. Held-to-maturity securities. D. Trading securities. 39. The income statement reports changes in fair value for which type of securities? A. Securities reported under the equity method. B. Trading securities. C. Held-to-maturity securities. D. Securities available for sale. 40. Trading securities are most commonly found on the books of: A. Oil companies. B. Manufacturing companies. C. Banks. D. Foreign subsidiaries. 41. For trading securities, unrealized holding gains and losses are included in earnings: A. Only at the end of the fiscal year. B. On each reporting date. C. Only when they exceed 10% of the underlying investment. D. Based on a vote of the board of directors. 42. Trading securities, by definition, are properly classified in the balance sheet as: A. Shareholders' equity. B. Intangibles. C. Current assets. D. Other assets. 43. Holding gains and losses on trading securities are included in earnings because: A. They measure the success or failure of taking advantage of short-term price changes. B. The IRS mandates the inclusion. C. The SEC mandates the inclusion. D. They measure the book value of the securities in the balance sheet date. 44. In the statement of cash flows, inflows and outflows of cash from buying and selling trading securities typically are considered: A. Investing activities. B. Operating activities. C. Financing activities. D. Noncash financing activities. 45. Dyckman Dealers has an investment in Thomas Corpora...
View Full Document

Ask a homework question - tutors are online