Question

Trading securities are a.reported as unrealized gains or losses on the income statement b.reported at fair value in the balance sheet c.reported at fair value on the balance sheet and as unrealized gains or losses on the income statement d.not reported on the balance sheet

Answer 1

Answer:

c.reported at fair value on the balance sheet and as unrealized gains or losses on the income statement

Explanation:

The trading securities focuses on the securities which are traded to gain the profit through selling the securities which are based on the market values

So

any profit or losses could be come under the income statement

whereas

The fair values are to be reported on the balance sheet

hence, the correct option is c.