Which of the Following Regarding Available-For-Sale Securities Is Correct

question 35

Multiple Choice

Which of the following regarding available-for-sale securities is correct?

• A)Available-for-sale securities are reported at cost on the balance sheet date, and unrealized holding gains and losses are included in income of the current period.
• B)Available-for-sale securities are reported at fair value on the balance sheet date, and unrealized holding gains and losses are included in income of the current period.
• C)Available-for-sale securities are reported at fair value on the balance sheet date, but unrealized holding gains and losses are not included in income of the current period.
• D)Available-for-sale securities are reported at cost on the balance sheet date, but unrealized holding gains and losses are not included in income of the current period.

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Definitions:

Goes Public

The process by which a private company offers its shares to the public for the first time through an initial public offering (IPO).

Improper Actions

involve behaviors or activities that are unethical, illegal, or not in accordance with established standards or policies.

Social Responsibility

The obligation of individuals, organizations, and businesses to contribute to the welfare of society and operate in an ethically, environmentally, and socially aware manner.

Recyclable Cups

Drinking containers made from materials that can be processed and reused to reduce waste.