Which Statement Is Correct About an at Fair Value Through

question 27

Multiple Choice

Which statement is correct about an at fair value through OCI investment?

• A)The investment is reported at historical cost.
• B)Changes in fair value are recorded in OCI.
• C)These investments are acquired exclusively for selling in the near term.
• D)Changes in fair value are recorded in income.

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Definitions:

Equivalent Units

A technique used in process costing that converts partially completed goods into a number of fully completed units.

Conversion Costs

The sum of direct labor and manufacturing overhead costs, representing the expenses incurred to convert raw materials into finished products.

FIFO Method

The First-In, First-Out method, an inventory valuation strategy where goods first added to inventory are the first ones to be sold.

Weighted-Average Method

An inventory costing method that calculates the cost of ending inventory and the cost of goods sold based on the average cost of all units available for sale during the period.