Which one is not a correct practice under the GAAP? Holding gain or loss for hel

Question

Which one is not a correct practice under the GAAP?

Holding gain or loss for held-to-maturity securities are estimated at the end of every accounting period

trading securities are in current assets, but securities held to maturity is in long-term assets (non current)

Holding gain or loss for trading and available for sale securities are not reported on income statement.

Generally cash equivalents include the investments purchased within three months of their maturity value.

Holding gain or loss for held-to-maturity securities are estimated at the end of every accounting period

trading securities are in current assets, but securities held to maturity is in long-term assets (non current)

Holding gain or loss for trading and available for sale securities are not reported on income statement.

Generally cash equivalents include the investments purchased within three months of their maturity value.

Explanation / Answer

Holding gain or loss for held-to-maturity securities are estimated at the end of every accounting period and will be at the cost and gain or loss will be accounted at the time of maturity

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