When a Debt Security Is Appropriately Carried and Reported as Securities

question 87

Multiple Choice

When a debt security is appropriately carried and reported as securities available for sale, a gain should be reported in the income statement:

• A) When the fair value of the security increases.
• B) When the present value of the security increases.
• C) Only when the Dow Jones Industrial Average increases at least 100 points.
• D) Only when the security is sold.

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Definitions:

Ethics

A set of moral principles that govern a person's behavior or the conducting of an activity, often applied in professional contexts.

Relativist Perspective

A viewpoint that suggests the value, truth, and standards of behavior can vary based on culture, society, or historical context.

Dignity and Worth

Core social work values emphasizing the importance of treating every individual with respect and considering their intrinsic value, regardless of circumstances.

Inherent Value

The intrinsic worth or importance of something, recognized as an essential or fundamental quality.