Equity Securities Classification and Reporting Quiz

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At historical cost, with gains and losses recognized upon sale
At fair value, with unrealized gains and losses reported in other comprehensive income
At the lower of cost or market value
At fair value, with unrealized gains and losses included in earnings (correct)

Reported at fair value with unrealized gains and losses included in earnings
Reported at fair value with unrealized gains and losses excluded from earnings and reported in other comprehensive income (correct)
Reported at the lower of cost or market value
Reported at cost with no adjustments

Dividends are recognized as income for available-for-sale securities, but not for trading securities
Dividends are recognized as income for both trading and available-for-sale securities (correct)
Dividends are not recognized as income for either trading or available-for-sale securities
Dividends are recognized as income for trading securities, but not for available-for-sale securities

At purchase price (A) Signup and view all the answers

They continue to be reported at their original cost (B) Signup and view all the answers

The fair value method is applied to both trading and available-for-sale securities (D) Signup and view all the answers