Describes the impact of classifying trading securities

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Problem 1: Which one of the following statements best describes the impact of classifying trading securities as available-for-sale securities?

a. Allows a company to delay recognition of gains and losses on the income statement but does not allow the company to manipulate its total equity
b. Allows a company to delay recognition of gains and losses on the income statement and also allows the company to manipulate its total equity
c. Does not allow a company to delay recognition of gains and losses on the income statement but allows the company to manipulate its total equity
d. Does not allow a company to delay recognition of gains and losses on the income statement and does not allow the company to manipulate its total equity

Reference no: EM132976728

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