Why are unrealized gains and losses from available-for-sale securities not reported as a component of net income? Select one: a. Because goodwill exists that must be separately accounted for b. Because the investor has the ability to exercise significant influence over the investee c. Because consolidated financial statements must be prepared d. Because large swings in market value over which management has no control may distort current period performance as measured by net income
Why are unrealized gains and losses from available-for-sale securities not reported as a component of net income? Select one: a. Because goodwill exists that must be separately accounted for b. Because the investor has the ability to exercise significant influence over the investee c. Because consolidated financial statements must be prepared d. Because large swings in market value over which management has no control may distort current period performance as measured by net income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Why are unrealized gains and losses from available-for-sale securities not reported as a component of net income?
Select one:
a. Because goodwill exists that must be separately accounted for
b. Because the investor has the ability to exercise significant influence over the investee
c. Because consolidated financial statements must be prepared
d. Because large swings in market value over which management has no control may distort current period performance as measured by net income
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