Which of the Following Is an Effect of the Reclassification

question 41

Multiple Choice

Which of the following is an effect of the reclassification of trading securities as available-for-sale?

• A)The balance sheet would need to be adjusted to report the securities at fair market value and there would be no effect on the income statement.
• B)There would be no effect on either the balance sheet or the income statement.
• C)The balance sheet would need to be adjusted to report the securities at fair market value and unrealized gains or losses on the date of the transfer would be included in net income.
• D)There would be no effect on the balance sheet and unrealized gains or losses on the date of the transfer would be included in net income.

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Definitions:

Kidneys

Bean-shaped organs in vertebrates responsible for filtering blood, removing waste products, and excreting urine.

Glomerular Filtration

The process by which the kidneys filter blood, removing excess wastes and fluids to form urine.

Urine Formation

The process by which kidneys filter blood, remove waste products and excess substances, and excrete them as urine.

First Step

The initial action or move in a process or sequence of actions.