Question

Each of the three categories of investments in debt and equity securities has similar accounting for all of the following transactions except

a. recognition of dividend and interest income
b. initial recording of cost
c. recognition of unrealized holding gains and losses
d. recognition of realized gains or losses on sales

Answer 1

d. recognition of realized gains or losses on sales

Step-by-step explanation:

In the case of trading securities, the non-realized gain and losses should be recorded in the income statement. So at the time when securties are sold so here the realized gain are distinct as compared to the afs and htm securties

So as per the given situation, the option d is correct

And, the same should be considered