Which of the Following Properly Describes a Difference Between the Accounting

question 101

Multiple Choice

Which of the following properly describes a difference between the accounting for a trading security relative to the accounting for an available-for-sale security for a particular investment?

• A)Total stockholders' equity at any point in time differs between the two alternatives.
• B)Total assets at any point in time differs between the two alternatives.
• C)Net income for a particular period may differ between the two alternatives.
• D)Net income over the life of the investment will differ.

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Definitions:

Entrepreneurial Ability

is the skill set and initiative to start, manage, and succeed in a new business venture or enterprise.

Resources

refer to assets, materials, or inputs used to produce goods and services, including natural resources, human skills, and capital.

Production Possibilities Curve

A graph that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.

Production Possibilities Frontier

A graph that shows the various combinations of outputs that an economy can possibly produce given the available factors of production and the available production technology.