An Investor in Available-For-Sale Securities Has the Following Information Available $\quad \$8,000$

question 99

Multiple Choice

An investor in available-for-sale securities has the following information available at December 31,2012:
Market value of trading securities $\quad \$8,000$
Acquisition cost of trading securities $\quad \$9,000$
How does the investor report the change in market value on the available-for-sale securities at December 31,2012?

• A) unrealized loss of $1,000 on income statement
• B) unrealized gain of $1,000 on income statement
• C) $1,000 is added to accumulated other comprehensive income account on the balance sheet
• D) $1,000 is subtracted from the accumulated other comprehensive income account on the balance sheet

Recognize adverse selection and moral hazard problems in various markets.

Identify mechanisms like market signaling and government intervention to mitigate asymmetric information issues.

Relate the concepts of risk aversion, risk neutrality, and risk-loving to decision-making under uncertainty.

Comprehend how insurance markets are affected by personal behavior and information asymmetry.

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Definitions:

State Board of Nursing

A regulatory authority responsible for setting and enforcing standards for nursing practice and education within a specific state.

American Nurses Association

A professional organization that represents the interests of registered nurses in the United States, providing resources and advocacy.

Federal Insurance Program

A government-funded program designed to provide insurance coverage to individuals, often focusing on health, disability, or unemployment.

End-Stage Renal Disease

The final phase of chronic kidney disease where the kidneys no longer function adequately to meet the body's needs.