Which of the Following Is/are True

question 46

Multiple Choice

Which of the following is/are true?

• A)Management can sell securities with unrealized holding gains (or losses) and transfer through net income to Retained Earnings the entire unrealized holding gain (or loss)-that is, management can affect the timing of gain or loss recognition in net income for securities available-for-sale, but not for trading securities.
• B)The timing ability is asymmetric in that impairment rules preclude indefinite deferrals of the recognition in income of unrealized losses, but not unrealized gains.
• C)Users of the financial statements should be alert to the accounting effect on net income in evaluating the profitability of firms with both trading securities and securities available-for-sale.
• D)all of the above
• E)none of the above

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Definitions:

Aesthetic Judgment

The process or act of analyzing and evaluating the beauty, artistry, or taste of something, often influenced by personal preferences, cultural norms, and societal trends.

Kant

A German philosopher of the 18th century, Immanual Kant is regarded as a central figure of modern philosophy who argued that reason is the source of morality and that aesthetics arises from a faculty of disinterested judgment.

Cezanne

Paul Cézanne was a French artist and Post-Impressionist painter whose work laid the foundations for the transition from 19th-century conceptions of artistic endeavor to a new and radically different world of art in the 20th century.

Aesthetics

The branch of philosophy concerned with the nature and appreciation of art, beauty, and taste.