A Local Governmental Entity Began the Year with a Portfolio

question 16

Multiple Choice

A local governmental entity began the year with a portfolio of securities with an historical cost of $600 and a fair value of $620.During the year the government acquired an additional security at a cost of $130 and sold for $100 a security that had an historical cost of $86 and a fair value at the beginning of the year of $95.At the end of the year the securities portfolio had a fair value of $665.The amount that should be recognized on the financial statements for the year as investment income is

• A)Gain $5.
• B)Gain $10.
• C)Gain $14.
• D)Gain $15.

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Definitions:

Executive Search Firms

Companies specializing in recruiting high-level executives and professionals for other companies and organizations.

High Turnover

A situation where an organization or industry experiences a high rate of employees leaving and needing to be replaced within a certain period.

Strategic Competitiveness

The ability of an organization to formulate and implement strategies that secure a sustainable competitive advantage in the market.

Threaten

To express intention to cause harm or take adverse action against someone in order to induce them to do or abstain from doing something.