A weakness of ___?____ is that firms can increase or decrease net income by choosing to sell particular investments with net unrealized gains or unrealized losses.

Question

Quizplus · Accepted Answer

The available-for-sale approach allows firms to recognize unrealized gains or losses in other comprehensive income, which can be realized in net income when the investments are sold, thus allowing manipulation of net income.

A Weakness of ___?____ Is That Firms Can Increase or Decrease

A Weakness of _?__ Is That Firms Can Increase or Decrease