A Company Failed to Record Unrealized Gains of $20 Million

question 88

Multiple Choice

A company failed to record unrealized gains of $20 million on its trading security investments.Its tax rate is 30%.As a result of this error,total shareholders' equity would be:

• A)Understated by $14 million.
• B)Understated by $7 million.
• C)Understated by $20 million
• D)Unaffected.

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Definitions:

Humanist Therapist

A mental health professional who applies principles of humanism, focusing on the individual's potential and stressing the importance of growth and self-actualization.

Carl Rogers

A pioneering psychologist who founded the humanistic approach to psychology, emphasizing the importance of self-actualization and the therapist-client relationship.

Unconditional Positive Regard

An attitude of total acceptance and support towards another person, regardless of what they say or do, often considered essential in client-centered therapy.

Client-centered Therapy

A psychotherapeutic approach that emphasizes understanding and valuing the client's perspective and fostering self-discovery and self-acceptance.