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:

Accommodation

The cognitive process of adjusting one's understanding to incorporate new information.

Cornea

The transparent front part of the eye that covers the iris, pupil, and anterior chamber, contributing to the eye's optical power.

Visual Stimulation

The process of stimulating one's sense of sight, often through the presentation of images, patterns, or light.

Ganglion Cells

Neurons located in the retina that receive visual information from photoreceptors and transmit it to the brain via the optic nerve.