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:

Resilient

Characterized by the ability to recover quickly from difficulties or setbacks.

Major Depressive Disorder

A mental disorder characterized by a minimum two-week period of low mood that is present across most situations, often accompanied by low self-esteem, loss of interest in normally enjoyable activities, low energy, and pain without a clear cause.

Delusions

Strongly held false beliefs or opinions, despite being contradicted by reality or rational argument, typically due to mental illness.

Fatigue

A state of physical or mental weariness resulting from exertion, which can diminish capacity for work and efficiency of function.