The Recognition of Unrealized Gains on Marketable Securities

question 14

Multiple Choice

The recognition of unrealized gains on marketable securities:

• A) depends on the classification of the securities.
• B) causes net income to increase regardless of the securities' classification.
• C) causes earnings per share to increase regardless of the securities' classification.
• D) is a primary concern under the equity method.

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Definitions:

Positive Outcomes

Favorable or beneficial results or effects of an action, situation, or event.

Successful Marriages

Characterized by partners' mutual respect, love, communication, and the ability to resolve conflicts in a healthy manner.

Positive Emotions

Feelings that are generally beneficial and enjoyable, such as happiness, joy, love, and gratitude, contributing to overall well-being.

Conflict

A disagreement or confrontation resulting from opposing or incompatible actions, ideas, or beliefs between parties.