Explain 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 held-to-maturity securities? Assume that the losses are NOT deemed as other than temporary.

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

Reference no: EM132976730

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