If a company has losses in its marketable securities, it would most likely want to report the securities using what method?
A) Held-to-maturity
B) Trading securities
C) Available-for-sale

Question

Quizplus · Accepted Answer

Available-for-sale securities allow companies to report unrealized losses (and gains) in other comprehensive income rather than in net income, which can be advantageous for a company experiencing losses in its marketable securities. This method avoids the immediate impact of losses on earnings, which could be preferable for a company looking to present a stronger income statement.

If a Company Has Losses in Its Marketable Securities, It