"Gains Trading" or "Cherry Picking" Involves

question 129

Multiple Choice

"Gains trading" or "cherry picking" involves

• A) moving securities whose value has decreased since acquisition from available-for-sale to held-to-maturity in order to avoid reporting losses.
• B) reporting investment securities at fair value but liabilities at amortized cost.
• C) selling securities whose value has increased since acquisition while holding those whose value has decreased since acquisition.
• D) All of the above are considered methods of "gains trading" or "cherry picking."

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Definitions:

Bounded Rationality Model

An approach suggesting that decision-making is limited by the information available, cognitive limitations of individuals, and the finite amount of time they have to make decisions.

Political Model

A framework in organizational studies that examines the use of power and influence by individuals and groups within an organization.

Radio-Frequency Identification (RFID)

A technology that uses electromagnetic fields to automatically identify and track tags attached to objects, containing electronically-stored information.

Tag

A label or keyword assigned to categorize or identify information, making it easier to search or group related items.