A Major Difference in Accounting for AFS Investments Versus HFT

question 51

Multiple Choice

A major difference in accounting for AFS investments versus HFT investments is:

• A)Dividends are only reported as investment income in AFS investments
• B)Only AFS investments are carried at FMV on the statement of financial position
• C)Gains and losses for AFS investments are recorded in net earnings only when the investment is sold
• D)There are no major differences in the accounting between AFS and HTM investments.

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Definitions:

Self-Control

The capacity to manage one's feelings, thoughts, and actions when confronted with desires and sudden urges.

Dependency

A reliance on others for emotional support, approval, or physical needs, often beyond what is typical for an individual's developmental stage.

Doctrine Of Opposites

In psychoanalytic theory, the idea that everything implies or contains its opposite.

Oral Character

A term from psychoanalytic theory describing personality traits associated with the oral stage of psychosexual development, such as dependence or passivity.