For which kind of marketable securities are any unrealized gains and losses shown on the income statement?
A)Trading securities
B)Available-for sale securities
C)Held-to-maturity securities
D)Trading and held-to-maturity securities

Question

Quizplus · Accepted Answer

Trading securities are the only category among the options where unrealized gains and losses are reported on the income statement. This is because these securities are bought and held primarily for selling them in the short term, and their fair value changes are considered to impact the current period's earnings.

For Which Kind of Marketable Securities Are Any Unrealized Gains