An analyst is reviewing the financial statements of a company and notices that in the shareholders' equity section they have the following account: "Accumulated other comprehensive income-unrealized gains on investments." Which of the following statements about the company is true?
A) The company must actively engage in trading securities as part of its business.
B) The assets on the balance sheet are understated by that same amount.
C) There are unrealized gains reported on the income statement.
D) The company's net income would be higher if any investments held by the company were classified as FVTPL securities.
Correct Answer:
Verified
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