Equity Securities Classification and Reporting Quiz

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

<p>At purchase price</p> Signup and view all the answers

<p>They continue to be reported at their original cost</p> Signup and view all the answers

<p>The fair value method is applied to both trading and available-for-sale securities</p> Signup and view all the answers