At the End of the First Year of Operations the Total

question 26

Multiple Choice

At the end of the first year of operations the total cost of the trading securities portfolio is $245000. Total fair value is $250000. The financial statements should show

• A) an addition to an asset of $5000 and a realized gain of $5000.
• B) an addition to an asset of $5000 and an unrealized gain of $5000 in the stockholders' equity section.
• C) an addition to an asset of $5000 in the current assets section and an unrealized gain of $5000 in "Other revenues and gains."
• D) an addition to an asset of $5000 in the current assets section and a realized gain of $5000 in "Other revenues and gains."

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Definitions:

Emerging Discipline

A field of study that is in the process of establishing itself as a recognized branch of academic inquiry due to new interests or technological advances.

Industrial-Organizational Psychologist

A psychologist who applies psychological theories and principles to organizations and the workplace to improve productivity, work quality, and employee well-being.

Applied Research

Research aimed at solving practical problems rather than acquiring knowledge for knowledge's sake.

Introspection

The examination of one’s own conscious thoughts and feelings, often used in psychological research to explore mental states.