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.

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Definitions:

Canalization

The tendency for a trait that is biologically programmed to be restricted to only a few outcomes.

Range of Reaction

A theory suggesting that genetic potential sets certain limits on the expression of traits, but the environment determines where within those limits an individual will fall.

Epigenesis

The process through which the genotype interacts with the environment to guide development, affecting gene expression without altering the DNA sequence.

Passive Correlation

A statistical relationship between two variables where changes in one variable occur alongside but are not directly caused by changes in the other.