Investments

Question 1

At Fair value as either Current or Non-current assets.

Answer 1

Investments

Question 2

Included in OCI (Other Comprehensive Income)

Answer 2

Investments

Question 3

HTM - Stockholder’s Equity
/ Trading Securities - Current Period.

Answer 3

Investments

Question 4

Amortized cost as Current or Non-current assets.

If reclassified as AFS - Unrealized G/L go to Stockholder’s Equity

If reclassified as Trading Securities - Unrealized G/L recognized in Current Period

Answer 4

Investments

Question 5

Trick question - Unrealized gains or losses are not applicable because they are HTM

Answer 5

Investments

Question 6

At Fair Value as a Current Asset

Unrealized gains/losses are recorded on the Income Statement

If they are reclassified as held-to-maturity or available-for-sale- there is no effect upon transfer.

Answer 6

Investments

Question 7

Recorded on the Income Statement

If they are reclassified as HTM or AFS - there is no effect upon transfer.

Answer 7

Investments