When a Company Recognizes Unrealized Losses on Trading Securities, Its

question 23

Multiple Choice

When a company recognizes unrealized losses on trading securities, its earnings per share:

• A) decreases.
• B) increases.
• C) is not affected.
• D) may increase or decrease depending on the related market value.

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Definitions:

Rescission

The legal act of cancelling or terminating a contract, returning the parties, as much as possible, to their positions prior to entering the agreement.

Rebuilt Transmission

A vehicle transmission that has been disassembled, inspected, repaired, and reassembled with new or refurbished components to meet original specifications.

Tort Of Deceit

A legal wrong involving intentional misrepresentation or concealment of truth leading to damage or injury to another.

Compensation

Payment or reparation received by someone as a recompense for loss, injury, or suffering.