Unrealized Gains and Losses from Changes in the Fair Value

question 20

True/False

Unrealized gains and losses from changes in the fair value of available-for-sale securities are reported as part of current net income.

---

Definitions:

Straight-line Depreciation

A method of depreciating fixed assets evenly across their useful life.

Required Return

The lowest percentage of return per annum that draws in companies or individuals to invest in a particular security or project.

IRR

Internal rate of return; a financial metric used to assess the profitability of investments by calculating the rate of return where net present value of all cash flows (both positive and negative) from a project equals zero.

Project

A temporary endeavor undertaken to create a unique product, service, or result.