For Which Type of Investments Would Unrealized Increases and Decreases

question 63

Multiple Choice

For which type of investments would unrealized increases and decreases be recorded directly in an owners' equity account?

• A) Equity method securities
• B) Available-for-sale securities
• C) Trading securities
• D) Held-to-maturity securities

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Definitions:

Conjugate Acid

A species formed by the reception of a proton (H+) by a base, related to its conjugate base by the difference of one hydrogen atom.

Ethanol

A two-carbon alcohol, commonly known as alcohol, with the chemical formula C2H5OH, used as a solvent, fuel, and in beverages.

Increasing Basicity

A qualitative term describing the trend or pattern observed as the basic character (ability to accept protons) of a series of compounds increases.

Acid-Base Pair

A set of two substances that transform into each other by the gain or loss of a proton.