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Which of the Following Regarding Trading Securities Is Correct

Question 7

Multiple Choice

Which of the following regarding trading securities is correct?


A) Trading securities are reported at cost on the balance sheet date, and unrealized holding gains and losses are included in income of the current period.
B) Trading securities are reported at fair value on the balance sheet date, and unrealized holding gains and losses are included in income of the current period.
C) Trading securities are reported at fair value on the balance sheet date, but unrealized holding gains and losses are not included in income of the current period.
D) Trading securities are reported at cost on the balance sheet date, but unrealized holding gains and losses are not included in income of the current period.

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