The FASB Has Allowed Certain Items to Be Reported Directly

question 195

True/False

The FASB has allowed certain items to be reported directly to stockholders' equity in an effort to mitigate the possibility of income fluctuating widely from period to period.

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Definitions:

Nuncupative

Pertains to a will that is declared orally by the testator in the presence of witnesses, usually under circumstances where a written will cannot be produced.

Prudence

Exercising caution or care in the management of resources or decision-making to avoid unnecessary risks.

Loyalty

A strong feeling of support or allegiance to a person, group, or cause.

Constructive Trust

A legal remedy imposed by a court to address unjust enrichment, where a person holding title to property is deemed to do so for the benefit of another.