Where Are Changes in Fair Value for Available for Sale

question 105

Multiple Choice

Where are changes in fair value for available for sale securities reported?

• A) as operating income or loss on the income statement
• B) as income or loss from peripheral activities on the income statement
• C) as a component of accumulated other comprehensive income on the balance sheet
• D) as a prior period adjustment to retained earnings on the balance sheet

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Definitions:

Dividends Paid

The total amount of money distributed to shareholders from a corporation's earnings.

Retention Ratio

The percentage of net earnings not paid out as dividends but kept by the company for reinvestment.

Cash Dividends

Distributions from a company's earnings paid to its shareholders.