When Accounting for Short-Term Investments

question 31

Multiple Choice

When accounting for short-term investments:

• A) only gains are recorded when market value increases above cost
• B) only losses are recorded when market value increases above cost
• C) losses and gains are recorded when market value changes
• D) losses are recorded only when market value decreases below cost

---

Definitions:

Skills and Confidence

The combination of abilities and self-assurance that enables an individual to perform tasks effectively and believe in their capacities.

Subordinate Jobs

Positions within an organization that fall below the managerial or leadership levels, typically involving more direct task execution under supervision.

Substantial Delegation

refers to transferring a considerable amount of decision-making power or responsibility from superiors to subordinates in an organization.

Work Unit

A work unit is a group of individuals within an organization tasked with specific responsibilities or objectives.