Question

Which of the following is required by accounting standards for the presentation and disclosure of investments in marketable securities?

a. By classification as trading, available-for-sale or held-to maturity.
b. For an analyst's determination of liquidity.
c. For the company's physical possession of the security versus agent holdings.
d. For the expected success of the organization of investmen

Answer 1

a. By classification as trading, available-for-sale or held-to maturity.

Step-by-step explanation:

available for sale will be valued at fair value and the difference in prices will go into unrealized gain/loss of the other comprehensive income until the securities are sold.

While held-to maturity allow for treated as present value of the future cash flow regardless ofthe securities current market value. It will recognize gain through time