Under the Fair Value Through Net Income Model, Holding Gains

question 6

Multiple Choice

Under the fair value through net income model, holding gains are

• A)generally recognized in net income
• B)recognized in other comprehensive income
• C)recognized depending on management's intention
• D)(a) and (c)

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Definitions:

Consolidation Journal Entries

Accounting entries used to adjust and combine the financial statements of a parent company and its subsidiaries for reporting purposes.

Cash Adjustment

A modification of the cash balance reported in financial statements to reflect transactions or changes not yet captured in the cash account.