How Are Investments in Equity Securities with Readily Determinable Market

question 53

Multiple Choice

How are investments in equity securities with readily determinable market values and their related unrealized gains and losses reported by a not-for-profit organization?

• A) Lower of cost or market, with unrealized losses in the Statement of Activities.
• B) Fair value, with unrealized gains and losses in the Statement of Activities.
• C) Lower of cost or market, with unrealized losses in Temporarily Restricted Net Assets.
• D) Cost, with unrealized gains and losses in the Statement of Activities.

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Definitions:

Ectopic

In an abnormal position; in pregnancy refers to the embryo or fetus being outside the uterus.

Cryptorchidism

A condition in which one or both of the testes fail to descend from the abdomen into the scrotum normally before birth.

Smegma

A substance made up of dead skin cells and oils, typically found in areas with skin folds such as the genital region.

Fibroid

A tumor made up of fibrous and muscular tissue.