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:

Circulatory System

The body system responsible for the transport of blood, nutrients, gases, and wastes to and from cells, facilitating the maintenance of internal homeostasis.

Internal Transportation

The movement or transfer of substances, energy, or information within an organism or physical system.

Metarterioles

Small blood vessels that directly link arterioles with veinules.

Arterioles

Small branches of arteries that lead into the capillaries and regulate blood flow and pressure through the constriction and dilation of their walls.