CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

Amex, Inc. reports a investment portfolio. Which of the following statements is true?
A. If the portfolio includes available-for-sale securities, the unrealized gains (losses) will be reported in current income.
B. The available for sale securities in its portfolio will be reported at cost.
C. The portfolio can contain both available-for-sale and held-to-maturity securities.
Explanation: Portfolios can and usually do include investments accounted for under more than one of the acceptable methods (held-to-maturity, available-for-sale, and trading). A is false - unrealized gains (losses) on available-for-sale securities are reported in other comprehensive income, not current income. B is false - available-for-sale securities are reported at market value.

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