A Net Unrealized Increase in the Value of Available-For-Sale Securities

question 65

Multiple Choice

A net unrealized increase in the value of available-for-sale securities (considered as a whole) should be reflected in the current financial statements as

• A) An extraordinary item on the income statement which increases retained earnings
• B) A current revenue resulting from holding securities
• C) Only a disclosure in the footnotes to the financial statements
• D) A valuation allowance which is included in the equity section of the balance sheet

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Definitions:

Personal Experience

An individual's direct encounter or involvement in events, forming the basis of knowledge or beliefs.

Initial Impressions

The first perceptions or judgments formed about someone or something, before knowing them well.

Collateral Source

Information or support obtained from a secondary or alternative source, aside from the primary source.

Good Impression

The positive perception or judgment formed by others based on one's appearance, behavior, or qualities.