The generally accepted accounting principles for trading securities include all of the following except

Question

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The generally accepted accounting principles (GAAP) for trading securities involve initially recording the investment at cost (A), subsequently valuing the investment at fair value (B), and including interest and dividend revenue as part of income (D). However, unrealized holding gains and losses on trading securities are included in net income rather than as a component of shareholders' equity, making option C incorrect.

The Generally Accepted Accounting Principles for Trading Securities Include All