Which of the Following Is True Regarding Accounting for Investments

question 94

Multiple Choice

Which of the following is true regarding accounting for investments by state and local governmental units?

• A) Investments in securities accounted for under the equity method are to be reported at fair value.
• B) Realized gains and losses are to be reported separately from unrealized gains and losses in the Statement of Changes in Fiduciary Net Position.
• C) Both of the above.
• D) Neither A nor B above.

---

Definitions:

Central Utah Project

A United States federal water project undertaken by the Bureau of Reclamation to provide irrigation, municipal, and industrial water to parts of central Utah.

Traded

The action of buying, selling, or exchanging goods and services among parties.

Wastefully Used

Describes resources or items being utilized inefficiently or in a manner that does not maximize value.

Non-Renewable Resources

Natural resources such as coal, oil, and natural gas that cannot be replenished at the same rate they are consumed and will eventually deplete.