Investments in held-for-trading securities:
A) Include only equity securities.
B) Are reported as current assets.
C) Include only debt securities.
D) Are reported at their cost, no matter what their market value.
E) Are long-term investments.

Question

Quizplus · Accepted Answer

Investments in held-for-trading securities are considered short-term investments that are bought and held for the sole purpose of selling them to make a profit. Therefore, they are reported as current assets as they are expected to be converted into cash within a year. These securities can include both equity and debt securities and are reported at their fair market value, which may differ from their cost.

Investments in Held-For-Trading Securities