The Fair Value Option for Liabilities Reports Unrealized Gains and Losses

question 90

Multiple Choice

The fair value option for liabilities reports unrealized gains and losses that are not related to changes in instrument-specific credit risk ________.

• A) as other comprehensive income
• B) directly to retained earnings
• C) in net income
• D) as long-term capital gains

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Definitions:

Tempietto

A small Renaissance temple in Rome, designed by Donato Bramante, considered a masterpiece of High Renaissance architecture.

Commissioned

Refers to the act of officially appointing or hiring someone to perform a specific task or create a specific piece of work.

Rendition

The process of interpreting or performing a piece of music or art, or the act of surrendering a person from one jurisdiction to another.

David

A biblical figure renowned for defeating Goliath and eventually becoming the King of Israel.