Under the Cost/amortized Cost Model, Holding Gains Are

question 37

Multiple Choice

Under the cost/amortized cost model, holding gains are

• A) recognized in net income only when realized.
• B) recognized in other comprehensive income.
• C) recognized depending on management's intention.
• D) not recognized at all.

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Definitions:

External Users

Individuals or entities outside a company who rely on financial information to make decisions, such as investors, creditors, and regulatory bodies.

Planning and Control Decisions

The process where management sets goals for the organization and decides on the actions to achieve these goals as well as monitoring the progress.

Just-In-Time Manufacturing

A production method aimed at reducing inventory costs by receiving goods only as they are needed in the production process.

Inventory

The total amount of goods and materials held by a company for the purpose of resale or production.