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:

Fahrenheit

A temperature scale on which water freezes at 32 degrees and boils at 212 degrees under standard conditions.

Freezing

The process of turning a liquid into a solid by lowering its temperature below its freezing point.

Fahrenheit

A temperature scale in which water freezes at 32 degrees and boils at 212 degrees under standard atmospheric pressure, commonly used in the United States.

Active Lifestyle

A way of life that integrates physical activity into daily routines, aiming to improve health and wellbeing.