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.

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Definitions:

Pregnancy Discrimination Act

A federal law in the United States that prohibits discrimination against pregnant women in the workplace.

Maternity Leave

A period of absence from work granted to a mother before and after giving birth to recover and care for the newborn child.

BFOQ Defense

A legal justification used by employers to hire based on specific characteristics, like sex or age, that are normally prohibited by discrimination laws, when it's deemed reasonably necessary to the operation of the business or job.

Fair Labor Standards Act

United States federal law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments.