Interest and dividends earned during the period are reported on the Income Statement for which kind of marketable securities?
A)Trading securities
B)Available-for-sale securities
C)Held-to-maturity securities
D)All types of securities show interest and dividend income on the Income Statement.

Question

Quizplus · Accepted Answer

Interest and dividends earned from all types of marketable securities, including trading securities, available-for-sale securities, and held-to-maturity securities, are reported on the Income Statement. This is because these earnings represent income generated from the company's investments during the period, regardless of the classification of the securities.

Interest and Dividends Earned During the Period Are Reported on the Income