In USGAAP, Which of the Following Accurately Describes the Effects of of Transactions

question 112

Multiple Choice

In U.S.GAAP, which of the following accurately describes the effects of transactions involving investments on the statement of cash flows using the fair value method for trading securities and fair value hedges?

• A)Realized gains and losses appear in net income.Unrealized gains and losses appear in Other Comprehensive Income.
• B)Realized gains and losses appear in Other Comprehensive Income.Unrealized gains and losses appear in net income.
• C)Realized gains and losses appear in Retained Earnings.Unrealized gains and losses appear in Other Comprehensive Income.
• D)Realized gains and losses appear in Retained Earnings.Unrealized gains and losses appear in net income.
• E)Both realized and unrealized gains and losses appear in net income.

---

Definitions:

Counterconditioning

A behavioral therapy technique that involves teaching the subject to associate a positive response with a stimulus that previously elicited a negative response.

Reciprocal Inhibition

Wolpe’s term for the idea that only one emotional state can be experienced at a time.

Sensory Disinhibition

The reduction of inhibitory signals in the nervous system, leading to an increase in sensory experiences.

Sensory Preconditioning

The initial pairing of two stimuli, which will enable one of the stimuli (CS2) to elicit the conditioned response (CR) without being paired with an unconditioned stimulus (UCS) if the other stimulus (CS1) is paired with UCS.