IIA
IIA-CFSA · Question #169
Banks can record interest earned on trading securities as either interest income or trading income. However, the recommended method is:
The correct answer is A. To report interest income separately from trading income if the amount is material. See the full explanation below for the reasoning.
Question
Banks can record interest earned on trading securities as either interest income or trading income. However, the recommended method is:
Options
- ATo report interest income separately from trading income if the amount is material
- BTo report interest income with trading income if the amount is material
- CTo report interest income separately from trading income if the amount is not material
- DTo report interest income with trading income if the amount is not material
How the community answered
(39 responses)- A72% (28)
- B5% (2)
- C8% (3)
- D15% (6)
Community Discussion
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