A company holds a portfolio of securities, some classified as trading and others as available for sale. How does this classification impact the balance sheet presentation?

• A. Both trading and available for sale securities are always classified as current assets.
• B. Both trading and available for sale securities are always classified as long-term assets.
• C. Trading securities are classified as current assets, while available for sale can be current or long-term.
• D. Trading securities are classified as long-term assets, while available for sale are current.

Answer: (C)