Securities that require unrealized gains or losses to be recorded on the income statement are called:
A) held-to-maturity securities.
B) trading account securities.
C) available-for-sale securities.
D) revenue securities.
E) repurchase agreements

Question

Quizplus · Accepted Answer

Trading account securities are those that a company buys and holds primarily for the purpose of selling them in the near term to profit from short-term price fluctuations. Unrealized gains or losses on these securities are recorded on the income statement.

Securities That Require Unrealized Gains or Losses to Be Recorded