Available-for-sale securities are actively managed like trading securities because the company intends to trade them for profit in the short term.

Question

Quizplus · Accepted Answer

Available-for-sale securities are not actively managed like trading securities. They are classified as long-term investments where the company does not have the intention to sell them in the short term. Companies hold available-for-sale securities to earn interest or dividend income, or to benefit from potential price appreciation over a longer period of time.

Available-For-Sale Securities Are Actively Managed Like Trading Securities Because the Company