Which of the following is/are true?
a. Management can sell securities with unrealized holding gains (or losses) and transfer through net income to Retained Earnings the entire unrealized holding gain (or loss)—that is, management can affect the timing of gain or loss recognition in net income for securities available-for-sale, but not for trading securities.
b. The timing ability is asymmetric in that impairment rules preclude indefinite deferrals of the recognition in income of unrealized losses, but not unrealized gains.
c. Users of the financial statements should be alert to the accounting effect on net income in evaluating the profitability of firms with both trading securities and securities available-for-sale.
d. all of the above
e. none of the above
D
You might also like to view...
When we describe our feelings and we are not judging the other person, which action are we taking?
A. displaying feelings B. “stuffing: feelings C. describing feelings D. numbing feelings
When you use any phrase, sentence, or distinctive words from another source, how do you note the use of someone's source in the text?
A) Use a citation B) Use a work cited page C) Use quotation marks D) Use a summary E) Paraphrase
Damaged and obsolete goods that can be sold:
A. Are included in inventory at their net realizable value. B. Should be disposed of immediately. C. Are included in inventory at their full cost. D. Are assigned a value of zero. E. Are never counted as inventory.
In the course of an argument, Tanya made a few biting comments about the way she felt Nancy was treating her
Nancy thought Tanya's comments were unfair and was tempted to make a cynical, retaliatory remark. Instead, she allowed Tanya to vent and tried not to take Tanya's comments personally. Nancy's behavior best illustrates: a. Persistence b. Self-awareness c. Openness b. Critical reasoning