Question: Why might a manager intentionally classify a debt security investment as available-for-sale rather than trading? The manager may wish to prevent a decline in value

Why might a manager intentionally classify a debt security investment as available-for-sale rather than trading?

  • The manager may wish to prevent a decline in value from being reported on the income statement.
  • The manager may wish to prevent an increase in value from being reported on the income statement.
  • The manager may wish to prevent a decline in value from being reported in shareholders equity.
  • The manager may wish to prevent an increase in value from being reported in shareholders equity.

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