The Economic Concept of Income Would Require That an Investment

question 19

Multiple Choice

The economic concept of income would require that an investment in the common stock of another entity be

• A) Reported in the balance sheet at historical cost and that only realized gains and losses be reported in earnings.
• B) Reported in the balance sheet at historical cost and that unrealized gains and losses be reported in earnings.
• C) Reported in the balance sheet at fair value and that unrealized gains and losses be reported in earnings.
• D) Reported in the balance sheet at fair value and that unrealized gains and losses be reported in other comprehensive income.

---

Definitions:

Contingency Theory

A management theory that suggests the most appropriate form of organizational structure or managerial action depends on the specific situational variables.

Weber's Concept

Theories and principles developed by sociologist Max Weber, including authority types and the characteristics of bureaucracy.

Bureaucracy

A system of administration characterized by strict policies, procedures, and hierarchy, often within large organizations or governments.

Management Duties

The responsibilities held by individuals in managerial positions, including planning, organizing, leading, and controlling organizational resources to achieve specific goals.