At the End of the First Year of Operations, the Total

question 207

Multiple Choice

At the end of the first year of operations, the total cost of the trading investments portfolio is $140,000. Total fair value is $125,000. The financial statements under GAAP should show

• A) a reduction in the carrying value of the asset $15,000 in current assets and a realized loss of $15,000 in other expenses and losses.
• B) a reduction in the carrying value of the asset $15,000 in current assets and an unrealized loss of $15,000 in other comprehensive income.
• C) a reduction in the carrying value of the asset of $15,000 in current assets and an unrealized loss of $15,000 in the equity section of the balance sheet.
• D) a reduction in the carrying value of the asset of $15,000 in current assets and unrealized loss of $15,000 in other expenses and losses.

---

Definitions:

Tab Stops

Predefined positions on a line in a document where the typing cursor moves when the Tab key is pressed, facilitating alignment of text.

Clear All

A command or option in software that removes all content or selections within a given context or field.

Square Text Wrapping

A setting in word processing and desktop publishing that allows text to flow around an object forming a square boundary.

Inline Picture

An image that is inserted directly into a document's text line, allowing it to move with the text.