Which of the following is not true regarding investments in securities available-for-sale?
A) The unrealized holding gain or holding loss increases or decreases Other Comprehensive Income (a shareholders' equity account) .
B) The Other Comprehensive Income (a shareholders' equity account) is closed to Accumulated Other Comprehensive Income (another shareholders' equity account) at the end of the period.
C) The amortization of any difference between the purchase price and the maturity value of the debt makes interest revenue on these debt securities differ from the cash receipts for debt service payments.
D) Accumulated Other Comprehensive Income includes the sum of all increases and decreases in fair value of securities available-for-sale that have not yet appeared in net income.
E) Holding gains and losses on securities available-for-sale affect net income every accounting period.
Correct Answer:
Verified
Q22: Alex Corporation acquires securities classified as marketable
Q23: Which of the following is/are not true?
A)Securities
Q24: To be classified as a current asset,
Q25: Barry Corporation holds equity securities earning $250
Q26: Kerry Corporation acquires the publicly traded debt
Q28: DPC, an electric utility, has $100 million
Q29: The investor recognizes interest on debt securities
Q30: The term _ implies active and frequent
Q31: U.S.GAAP requires which of the following disclosures
Q32: The provisions of IFRS require firms to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents