An Advantage of Using the Fair Value Through Other Comprehensive

question 89

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

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Definitions:

Obligations Performance

The fulfillment or execution of the duties, actions, or tasks that are required by a contract, agreement, or legal requirement.

Oral Agreement

A contract or agreement made through spoken communication rather than written, legally binding if it meets certain criteria.

Contract Discharge

The termination of a contract's obligations, which can occur through various means such as performance, agreement, or breach.

Art Show

An exhibition or display of artworks in a gallery or venue where artists can present their works to the public and potentially sell them.