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Fizzy Beverages Invests in the Debt Securities of Other Companies

Question 54

Multiple Choice

Fizzy Beverages invests in the debt securities of other companies. Which statement is false concerning reporting standards for these investments?


A) Fizzy can elect to report these investments at FV-NI.
B) Interest received on trading and AFS debt investments reduces the investment balance.
C) Trading and AFS debt securities are reported on the balance sheet at fair value.
D) Fizzy reports credit losses related to AFS and HTM investments in income.

Correct Answer:

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