Which of the Following Is Not True Regarding Investments in Securities

question 45

Multiple Choice

Which of the following is not true regarding investments in securities available-for-sale?

• A)The unrealized holding gain or holding loss increases or decreases Other Comprehensive Income (a shareholders' equity account).
• B)The Other Comprehensive Income (a shareholders' equity account) is closed to Accumulated Other Comprehensive Income (another shareholders' equity account) at the end of the period.
• C)The amortization of any difference between the purchase price and the maturity value of the debt makes interest revenue on these debt securities differ from the cash receipts for debt service payments.
• D)Accumulated Other Comprehensive Income includes the sum of all increases and decreases in fair value of securities available-for-sale that have not yet appeared in net income.
• E)Holding gains and losses on securities available-for-sale affect net income every accounting period.

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Definitions:

Ecosystem Diversity

Ecosystem diversity refers to the variety of habitats, biotic communities, and ecological processes in the biosphere, as well as the diversity within ecosystems.

Species Diversity

The variety and abundance of different species within a given ecological community or ecosystem.

Genetic Diversity

The amount of genetic information within a single population species.

Deep Ecology

Belief that unless we believe environmental issues become “our” issues, very little can be accomplished.