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:

Chickenpox

Chickenpox is a highly contagious viral infection causing an itchy rash and red spots or blisters all over the body, primarily affecting children.

Epidermis

The outermost layer of skin that acts as a protective barrier against environmental elements, pathogens, and water loss.

First-degree Burn

A superficial burn injury affecting only the outer layer of the skin, characterized by redness and pain without blistering.