USGAAP and IFRS Require Firms to Account for Debt Securities

question 61

Multiple Choice

U.S.GAAP and IFRS require firms to account for debt securities designated as held to maturity by not recognizing _____ but might recognize _____.

• A)increases in fair value (unrealized gains); decreases in fair value (unrealized losses)
• B)decreases in fair value (unrealized losses); increases in fair value (unrealized gains)
• C)increases in future value (unrealized gains); decreases in future value (unrealized losses)
• D)decreases in future value (unrealized losses); increases in future value (unrealized gains)
• E)increases in future value (realized gains); decreases in future value (realized losses)

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Definitions:

Oral Stage

A phase in Freudian psychosexual development where an infant's pleasure centers are in the mouth, leading to behaviors like sucking and biting.

Freud

Refers to Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Sarcastic Manner

A form of verbal irony that involves saying something in a way that means the opposite, often for humorous or emphatic effect.

Defense Mechanism

Psychological strategies used unconsciously by individuals to protect themselves from anxiety or guilt by denying or distorting reality.