Unrealized Gains or Losses on Certain Investments, Foreign Currency Translation

question 66

Multiple Choice

Unrealized gains or losses on certain investments, foreign currency translation adjustments, gains and losses from post-retirement benefit plans, and deferred gains and losses from derivatives are subject to specialized accounting treatment. These items would normally be found on the:

• A) statement of comprehensive income.
• B) income statement, included with extraordinary items.
• C) statement of net cash flow.
• D) balance sheet under liabilities.

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Definitions:

Rule of Law

The principle that all individuals, institutions, and entities are accountable to laws that are publicly promulgated, equally enforced, and independently adjudicated.

Governmental Power

The extent of authority and control that a government holds to regulate, manage, and influence societal and economic activities.

Theocratic Law

A system of law that relies on religious doctrine and belief.

Adjudicated

The process by which a judge or a legally appointed arbiter receives and weighs evidence to make a legal decision or judgment.