CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

Unrealized holding gains and losses are included in an investor's earnings for:
A. Trading Securities = Yes, Securities Available-For-Sale = No.
B. Trading Securities = Yes, Securities Available-For-Sale = Yes.
C. Trading Securities = No, Securities Available-For-Sale = Yes.
Explanation: Unrealized holding gains and losses are included in an investor's earnings for trading securities; they are reported as a component of other comprehensive income for available-for-sale securities.

User Contributed Comments 2

User Comment
danlan2 For trading securities, they are reported as part of net income; for AFS securities, they are reported as part of comprehensive income.
mrpman This question ask whether they are created included in the investor's EARNINGS. HAS ANY EVER, EVER, EVER HEARD ANYONE REFER TO OTHER COMPREHENSIVE INCOME AS EARNINGS?
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