Question: What reporting approach do companies use for available - for - sale securities that reduces the volatility of net income? Select answer from the options

What reporting approach do companies use for available

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for

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sale securities that reduces the volatility of net income?

Select answer from the options below

They report the securities at the amortized cost on the balance sheet and report them at fair value in the Fair Value Adjustment account.

They report the securities at fair value on the balance sheet but do not report changes in the Fair Value Adjustment account until the securities are sold.

They report the securities at fair value in the Fair Value Adjustment account but do not report the securities on the balance sheet until after the securities are sold.

They report the securities at fair value on the balance sheet but do not report changes in fair value as part of net income until after the securities are sold.

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