Changes from cost are reported as part of net income for
A) available-for-sale securities.
B) held-to-maturity securities.
C) debt securities.
D) trading securities.

Question

Quizplus · Accepted Answer

Changes in fair value for trading securities are reported in net income, while changes in fair value for available-for-sale and held-to-maturity securities are reported in other comprehensive income. Cost changes for debt securities are not relevant as they are typically held to maturity and recorded at amortized cost.

Changes from Cost Are Reported as Part of Net Income