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:

Excludable

A characteristic of a good or service that allows owners or providers to prevent others from using it without paying.

Concert Hall

A venue specifically designed and equipped for the performance of live music, often with attention to acoustical properties to enhance sound quality.

Artificially Scarce Goods

Goods that are made scarce by the actions of individuals or institutions, despite the capability of being easily produced in abundance.

Market Price

The current price at which an asset or service can be bought or sold in the open market.