An Advantage of Using the Fair Value Through Other Comprehensive

question 96

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 reversed, but unrealized gains are ignored for that security.
• D)unrealized gains must be reversed, but unrealized losses are ignored for that security.

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Definitions:

Pentanal

An organic compound that is a five-carbon aldehyde with the formula C5H10O, characterized by a pungent smell.

Sequence

A particular order in which related events, movements, or things follow each other.

Chromic Acid

An oxidizing agent composed of chromium trioxide or sodium dichromate in water; used for cleaning laboratory glassware and in oxidation reactions.

2° Alcohol

Also known as a secondary alcohol, it is an alcohol where the hydroxyl (-OH) group is attached to a carbon atom that is bonded to two other carbon atoms.