The FASB has allowed certain items to be reported directly to stockholders' equity in an effort to mitigate the possibility of income fluctuating widely from period to period.

Question

Quizplus · Accepted Answer

This statement is true. The FASB has allowed certain items, such as unrealized gains and losses on available-for-sale securities, to be reported directly in stockholders' equity to prevent these items from causing large fluctuations in reported income.

The FASB Has Allowed Certain Items to Be Reported Directly