Which of the following statements regarding available-for-sale debt securities is true?
A) Fair value adjustments are treated as adjustments to net income.
B) Fair value adjustments are treated as adjustments to other comprehensive income.
C) Available-for-sale securities are valued on the balance sheet at historical cost.
D) Interest revenue and fair value adjustments are netted to determine the effect on net income.
Correct Answer:
Verified
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