If a Company Has Elected the Fair Value Option, Where

question 143

Multiple Choice

If a company has elected the fair value option, where are gains and losses resulting from adjusting these accounts to fair value reported?

• A) Unrealized Gains are reported as part of Other Comprehensive Income while Unrealized losses are reported as part of Net Income.
• B) Unrealized Gains are reported as part of Net Income, while Unrealized Losses are reported as part of Other Comprehensive Income.
• C) Unrealized Gains and Losses are both reported as part of Net Income.
• D) Unrealized Gains and Losses are both reported as part of Other Comprehensive Income.

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Definitions:

Zuckerman

Refers to Marvin Zuckerman, a psychologist known for his research on sensation seeking and its implications on personality and behavior.

Sensation Seeking

A personality trait characterized by the search for experiences and feelings that are varied, novel, complex, and intense.

Middle School

An educational institution serving students typically between the ages of 11 and 14, bridging the transition from elementary school to high school.

Zuckerman

Refers to Marvin Zuckerman, an American psychologist known for his research on sensation seeking as a personality trait.