An Advantage of Using the Fair Value Through Other Comprehensive

question 23

Multiple Choice

An advantage of using the fair value through other comprehensive income is that

• A)the effect on other comprehensive income is reported in the income statement.
• B)unrealized gains and losses are not used to evaluate management.
• C)unrealized losses must be reported on the income statement, but unrealized gains are reported in other comprehensive income.
• D)unrealized gains must be reported on the income statement, but unrealized losses are reported in other comprehensive income.

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Definitions:

Prehensile Tail

A tail adapted for grasping or holding objects, found in some species of mammals, notably some monkeys.

Primate Suborder

A subdivision within the order Primates, which includes humans, apes, monkeys, and prosimians.

Prosimi

Commonly refers to a group of primates that includes lemurs, lorises, and tarsiers, often characterized by their more primitive features.

Homo Antecessor

Early humans living in about 1.2 mya to 800,000 years ago; some scientists believe that they should be classified with Homo heidelbergensis.