Which of the Following Statements Is Correct

question 20

Multiple Choice

Which of the following statements is correct?

• A)Any unrealized holding gain or loss on debt investments in trading securities is reported on the income statement.
• B)Any unrealized holding gain or loss on debt investments in available-for-sale securities is reported on the income statement.
• C)All unrealized gains and losses on debt investments are reported on the income statement regardless of the method used to account for the investment.
• D)All unrealized holding gains and losses on debt investments are reported as a component of Other Comprehensive Income regardless of the method used to account for the investment.

---

Definitions:

Etiquette

The accepted rules of courteous conduct in society or within specific professional or group settings.

Emotions

Complex psychological states that involve three distinct components: a subjective experience, a physiological response, and a behavioral or expressive response.

Indirect

A method of communication or action that is not straightforward or direct in approach.

Solicited Proposals

Proposals that are requested by an organization or individual, often in response to a specific need or problem.