Lesson 11B – Accounting for Short-Term Investments (Trading Securities)
Dr. DeBerg provides an exampleof a company that purchases short-term, trading securities. During the year, it records dividends, and at the end of the year it must -mark to market- the trading security portfolio The resulting unrealized gain or loss is part of this period's nonoperating income. In the following year, the securities are sold, with a realized gain or loss being recognized as part of nonoperating income.
Dr. DeBerg provides an exampleof a company that purchases short-term, trading securities. During the year, it records dividends, and at the end of the year it must -mark to market- the trading security portfolio The resulting unrealized gain or loss is part of this period’s nonoperating income. In the following year, the securities are sold, with a realized gain or loss being recognized as part of nonoperating income.
Thanks! Share it with your friends!
Tweet
Share
Pin It
LinkedIn
Google+
Reddit
Tumblr