The purpose of the fair value adjustment for securities classified as available-for-sale is: Select one: a. To

Fantastic news! We've Found the answer you've been seeking!

Question:

The purpose of the fair value adjustment for securities classified as "available-for-sale" is: Select one:

a. To adjust the valuation of a company's investment to current market value.

b. To recognize the proper amount of gain or loss on fluctuations in the market value of these securities in the current period income statement.

c. To adjust a corporation's capital stock account to reflect the current market value of the outstanding capital stock.

d. To compute the amount of taxes payable on unrealized gains and losses.

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0470423684

13th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield

See More Books

Posted Date: Oct 08, 2018 12:23 AM

See More Questions

In what situation will the unrealized holding gain or loss on a non-trading equity investment be reported in income?
Do entities report unrealized gains and losses on fair value adjustments to equity security investments in earnings? Explain.
Where are unrealized gains and losses reported for available-for-sale securities? Where are unrealized gains and losses reported for trading securities? Whats the reason for this reporting difference?
Using Exhibit 12-1, determine the life expectancy of a 40-year old male.
Answer Exercise 1 for each of the sequences 0110 and 1010.
Suppose that the distribution of typing speed in words per minute (wpm) for typists using a new type of split keyboard can be approximated by a normal curve with mean 60 wpm and standard deviation 15...
Water flows out through a set of thin, closely spaced blades as shown in Fig. P5.4 with a speed of $V=10 \mathrm{ft} / \mathrm{s}$ around the entire circumference of the outlet. Determine the mass...
Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: The enacted tax rate is 40%. Required: For...
You have been offered a job by the Boulder Dry Company . The director of HR has asked you to singe a two page contract . What provisions seen totally unrelated to the main purpose?
Compare and contrast the leadership styles exhibited by Steve Jobs and Tim Cook.
python notebook in HTML format. Scoring guide (Rubric) - Foundations for Data Science Criteria Points Question 1 Find the summary statistics for numerical columns and observations. (use describe...
3. Suppose one-year LIBOR is forecasted to fluctuate as follows: Year 1: 5.0% Year 2: 5.5% Year 3: 6.0% Year 4: 7.0% Year 5: 7.5% Answer the following question by using Excel and show the cells that...
Consider the following information on the yields of Government of Canada bonds on October 31, 2022 at 18:15 GMT+0 Residual maturity 3 months 1 year 2 years 5 years 10 years 30 years (a) Use this...
Design-Bid-Build and Design-Build address the Builder's requirements for completing the Work. Define the differences in the requirements for these two contract types, and why these differences exist....
6.4 7.1 vold 7.2 insert(int.string) string otect at a particular penitionspecified Inserts a string (specified as the SBS 2021 INP1501 as the first parameter) Erases a substring from a string object....
Review Just Running's income statement below. 4 7 5 Category 6 Revenue 8 9 10 11 12 13 14 15 16 17 18 Just Running Income Statement Net sales 23 A Cost of goods sold Operating expenses Selling,...
Rosa Gonzales has worked many years as a professional accountant. At the initial meeting of shareholderswhen the corporation was formed, she was asked by the other shareholders to suggest an...
Discuss the information available from the following techniques in the analysis of inorganic pigments used in antique oil paintings: (i) Powder X-ray diffraction, (ii) Infrared and Raman...
Presented below is the balance sheet of Belize Water Service Limited for the year ended 31 December 2022. Current assets Investments Property, plant and equipment Intangible assets Belize Water...
Analysis of Inventories the financial statements of General Mills Inc.'s 2007 annual report discloses the following information. Compute General Mills's (a) Inventory turnover and (b) The average...
State the generally accepted accounting principle applicable to the balance sheet valuation of each of the following assets. (a) Trade accounts receivable. (b) Land. (c) Inventories. (d) Trading...
Hong Kong Trading Co. (which uses iGAAP) is in the midst of a multi-year operational restructuring. It reported the following information in its 2010 annual report (amounts in $, in millions):...
When managers use offers of rewards and threats of punishments to try to get others to do what they want them to do, they are using which type of power? (a) formal authority (b) position (c) referent...
In the research on leader behaviors, which style of leadership describes the preferred high-high combination? (a) transformational (b) transactional (c) laissez-faire (d) democratic
How is a person with an authoritarian personality expected to act? (a) Strong tendency to obey orders. (b) Challenges the authority of others. (c) Tries to play down status differences. (d) Always...

The purpose of the fair value adjustment for securities classified as available-for-sale is: Select one: a. To

Question:

Expert Answer:

The purpose of the fair value adjustment for securities classified as availableforsale is a To ... View the full answer

Intermediate Accounting

Students also viewed these marketing questions