Under the Fair Value Through Net Income Model, Holding Gains

question 101

Multiple Choice

Under the fair value through net income model, holding gains are

• A) recognized in other comprehensive income only.
• B) recognized in either net income or other comprehensive income.
• C) recognized in net income only.
• D) ignored.

Comprehend the concepts of liabilities and assets and their impact on the financial statements when transactions occur.

Recognize the correct treatment of prepaid expenses and unearned revenues in accounting entries.

Understand the impact of cash and accrual transactions on the financial statements.

Know the differentiation between the cash basis and accrual basis of accounting, including the implications for financial reporting.

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