Which of the Following Is True Regarding Accounting for Investments

question 94

Multiple Choice

Which of the following is true regarding accounting for investments by state and local governmental units?

• A) Investments in securities accounted for under the equity method are to be reported at fair value.
• B) Realized gains and losses are to be reported separately from unrealized gains and losses in the Statement of Changes in Fiduciary Net Position.
• C) Both of the above.
• D) Neither A nor B above.

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Definitions:

Average Product

The output per unit of input, such as labor or capital, calculated by dividing total production by the number of input units.

Nonlabor Resources

Assets or inputs in production that are not related to direct human labor, such as machinery, raw materials, and land.

Total Product

The total quantity of output produced by a firm or economy, encompassing all goods and services.

Nonlabor Resources

Inputs in production that do not involve human labor, such as capital, land, and natural resources.