When Considering the Effects on the Financial Statements of Classifying

question 29

Multiple Choice

When considering the effects on the financial statements of classifying an investment as either FVTPL or FVTOCI all of the following statements are true, except:

• A)the value of the investment on the balance sheet will be the same under either classification.
• B)the interest or dividend income included in net income will be the same under either classification.
• C)while holding the investment the retained earnings will be the same under either classification.
• D)while holding the investment the total shareholders' equity will be the same under either classification.

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Definitions:

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize foods from carbon dioxide and water, producing oxygen as a byproduct.

Carbon Dioxide

An invisible, scentless gas that is a product of combusting carbon-based substances and breathing processes, which is utilized by plants during the photosynthesis.

Glycolysis

The metabolic pathway that converts glucose into pyruvate, releasing energy and pyruvic acid as end products.

Glucose

An essential energy-supplying sugar, fundamental to living entities and found in a vast array of carbohydrates.