Which of the following is/are true regarding securities classified as available-for-sale?
A) they must be tested for impairment and if they are impaired, the firm treats the unrealized loss in Accumulated Other Comprehensive Income as if it were realized.
B) they must be tested for impairment and if they are impaired, the firm treats the unrealized loss in Net Income as if it were realized.
C) they are not tested for impairment and do not effect Accumulated Other Comprehensive Income.
D) they are not tested for impairment and do not effect Net Income.
E) they must be tested for impairment and if they are impaired, the firm treats the unrealized loss in Retained Earnings as if it were realized.
Correct Answer:
Verified
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