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:

Purpose

The reason for which something is done or created or for which something exists.

Achieved Plans

Objectives or goals that have been successfully accomplished or realized.

Surpasses Objectives

Achieving beyond the set goals or targets in a given task or project.

Internal Control Strategy

Measures adopted by an organization to ensure accuracy and integrity of its financial reporting, compliance with laws and regulations, and efficiency of operations.