Asked by Terriona Hamilton on Jun 14, 2024
Verified
Trading securities are reported on the balance sheet at cost.
Trading Securities
Financial securities bought and held primarily for the purpose of selling them in the near term to profit from price changes.
Balance Sheet
A report that details a company's financial status by listing its assets, liabilities, and owners' equity at a certain date, offering a foundation for calculating return rates and analyzing its financial framework.
Cost
The amount of money or resources expended to acquire an asset, produce a product, or carry out a service.
- Learn the crucial concepts underpinning the accounting of investments and the basis for selecting fair value or cost methods.
Verified Answer
ST
sarthak tanejaJun 20, 2024
Final Answer :
False
Explanation :
Trading securities are reported on the balance sheet at fair market value, not at cost.
Learning Objectives
- Learn the crucial concepts underpinning the accounting of investments and the basis for selecting fair value or cost methods.