Refer to Black Corporation: Assume that these securities are trading securities.How will these securities be classified on the balance sheet at December 31 of the current year?

Question

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The securities will be classified as current assets on the balance sheet at December 31 of the current year. Choice B shows the classification of these securities as trading securities, which are securities that are bought and held principally for the purpose of selling them in the near term to generate profits from short-term price movements.

Refer to Black Corporation: Assume That These Securities Are Trading