An Unrealized Gain on an Equity Security When the Investor

question 57

Multiple Choice

An unrealized gain on an equity security when the investor has insignificant influence:

• A)is recorded when an investment is sold for more than its cost.
• B)is recorded when an investment is sold for less than its cost.
• C)is recorded when the fair market value of the investment is more than its cost,but it has not been sold.
• D)is recorded when the fair market value of the investment is less than its cost,but it has not been sold.

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Definitions:

Company'S Objective

The explicit goals or aims that a company intends to achieve, guiding its business strategies and decisions.

Transparent

A property of materials or objects that allows light to pass through them without being absorbed, making them see-through or invisible.

Opaque

Not transparent or translucent; impossible to see through.

Translucent

A property of a material that allows light to pass through, but diffuses it so that objects on the other side cannot be clearly seen.