Trading securities are reported on the balance sheet at
A) fair value.
B) cost.
C) cost, adjusted for the effects of interest.
D) lower of cost or market.

Question

Quizplus · Accepted Answer

Trading securities are those securities that are bought and held with the intention of selling them in the near future to earn a profit. These securities are reported on the balance sheet at fair value, which is the market price of the security as of the balance sheet date. This is in accordance with the fair value accounting principle, which requires companies to report their assets and liabilities at fair value.

Trading Securities Are Reported on the Balance Sheet at