Why might a manager intentionally classify a trading security as an available-for-sale security? Select one: a. The manager may wish to prevent an increase in value from being reported on the income statement. b. The manager may wish to prevent a decline in value from being reported in shareholders' equity. c. The manager may wish to prevent an increase in value from being reported in shareholders' equity. d. The manager may wish to prevent a decline in value from being reported on the income statement.
Why might a manager intentionally classify a trading security as an available-for-sale security? Select one: a. The manager may wish to prevent an increase in value from being reported on the income statement. b. The manager may wish to prevent a decline in value from being reported in shareholders' equity. c. The manager may wish to prevent an increase in value from being reported in shareholders' equity. d. The manager may wish to prevent a decline in value from being reported on the income statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Why might a manager intentionally classify a trading security as an available-for-sale security?
Select one:
a. The manager may wish to prevent an increase in value from being reported on the income statement.
b. The manager may wish to prevent a decline in value from being reported in shareholders' equity.
c. The manager may wish to prevent an increase in value from being reported in shareholders' equity.
d. The manager may wish to prevent a decline in value from being reported on the income statement.
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