Where Are Changes in Fair Value for Available for Sale

question 105

Multiple Choice

Where are changes in fair value for available for sale securities reported?

• A) as operating income or loss on the income statement
• B) as income or loss from peripheral activities on the income statement
• C) as a component of accumulated other comprehensive income on the balance sheet
• D) as a prior period adjustment to retained earnings on the balance sheet

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Definitions:

Repeated Games

A strategic situation where individuals or firms face the same opponents in a series of interactions, allowing for the development of strategies over time.

Simultaneous

Occurring, operating, or done at the same time.

Sequential

Describes processes, events, or things that follow one after the other in a specific order or sequence.

Credible Threats

Declarations or signals that a party intends to inflict harm or loss on another in the event of non-compliance, which are believable and likely to be carried out.