FAR#2

Question 1

Unrealized gains or losses on held-for-trading investments should be recognized in current year income or stockholders’ equity?

Answer 1

Income

Question 2

Unrealized gains or losses on available-for-sale investments should be recognized in current year income or stockholders’ equity?

Answer 2

Stockholders’ equity

Question 3

Held-to-maturity securities are recorded at what value?

Answer 3

Amortized cost (carrying amount)

Question 4

Available-for-sale securities are recorded at what value

Answer 4

Fair value