In U.S. GAAP, which of the following accurately describes the effects of transactions involving investments on the statement of cash flows using the fair value method for trading securities and fair value hedges?
a. Realized gains and losses appear in net income. Unrealized gains and losses appear in Other Comprehensive Income.
b. Realized gains and losses appear in Other Comprehensive Income. Unrealized gains and losses appear in net income.
c. Realized gains and losses appear in Retained Earnings. Unrealized gains and losses appear in Other Comprehensive Income.
d. Realized gains and losses appear in Retained Earnings. Unrealized gains and losses appear in net income.
e. Both realized and unrealized gains and losses appear in net income.
E
You might also like to view...
What are the ethical dilemmas that are emerging with the increase of technology? Provide an example
Job boards can be used for internal recruitment but not for external recruitment.
Answer the following statement true (T) or false (F)
When using financial performance measures, which of the following statements is incorrect?
A) Most companies use a weighted-average to determine the amount of average inventory. B) Average total assets are used for both ROI and RI computations. C) The limitations of financial performance measures reinforce the importance of the balanced scorecard. D) In general, calculating ROI based on the net book value of assets gives managers an incentive to continue using old, outdated equipment because its low net book value results in a higher ROI.
Resource Mining Company's (RMC) complex spews smoke and odors. The site features its own rail system, and trucks enter and exit the complex night and day. Sam and other residents of an adjacent neighborhood can feel the vibrations of the trains and trucks, and suffer other effects from RMC's operations. Sam and others file a suit against RMC. Why might the court rule in favor of RMC?
What will be an ideal response?