An Advantage of Using the Fair Value Through Other Comprehensive

question 32

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

---

Definitions:

GM

General Motors Company, an American multinational corporation headquartered in Detroit that designs, manufactures, markets, and distributes vehicles and vehicle parts.

Teens

Individuals in the age range of 13 to 19, encompassing the period of adolescence when children develop into adults.

Young Adults

Young adults refer to individuals who are in their late teens to mid-twenties, a period marked by significant transitions in personal, professional, and educational life.

Beer

An alcoholic beverage produced by the fermentation of sugars derived primarily from malted barley, and often flavored with hops.