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A Net Unrealized Increase in the Value of Available-For-Sale Securities

Question 32

Multiple Choice

A net unrealized increase in the value of available-for-sale securities (considered as a whole) should be reflected in the current financial statements as


A) An extraordinary item on the income statement which increases retained earnings
B) A current revenue resulting from holding securities
C) Only a disclosure in the footnotes to the financial statements
D) A valuation allowance which is included in the equity section of the balance sheet

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