If Dizbert Company Concluded That an Investment Originally Classified as Available

question 124

Multiple Choice

If Dizbert Company concluded that an investment originally classified as available for sale would now more appropriately be classified as held to maturity,Dizbert would:

• A)Not reclassify the investment,as original classifications are irrevocable.
• B)Reclassify the investment as held to maturity and immediately recognize in net income any unrealized gain or loss on the reclassification date.
• C)Reclassify the investment as held to maturity and treat the fair value as of the date of reclassification as the investment's amortized cost basis for future amortization.
• D)Need to restate earnings,as the original classification was in error.

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Definitions:

Option Group

A graphical control element allowing the user to choose only one of a predefined set of mutually exclusive options.

Grouping Controls

Elements in user interfaces that allow for the organization and management of multiple controls or items as a single unit.

Yes/No Field

A type of database field that allows for the storage of a boolean value, typically representing a true (Yes) or false (No) state.

Check Box

An interactive element in graphical user interfaces that can be toggled between two states, such as checked or unchecked.