Question : 21.A trading security measured at fair value the balance sheet : 1242682

21.A trading security is measured at fair value on the balance sheet date and reported as

a.A current asset, and changes in fair value are reported in earnings as unrealized gains and losses.

b.A current asset, and changes in fair value are reported in earnings as realized gains and losses.

c.Either a current or noncurrent asset depending on whether they meet the definition of a current asset.

d.A current asset, and changes in fair value are reported in accumulated other comprehensive income as unrealized gains and losses.

22.Current accounting for an available-for-sale (AFS) security is consistent with

a.The financial capital maintenance concept of income because AFS security unrealized gains and losses are reported in earnings.

b.The financial capital maintenance concept of income because AFS security unrealized gains and losses are reports in other comprehensive income.

c.The physical capital maintenance concept of income because AFS security unrealized gains and losses are reported in earnings.

d.The physical capital maintenance concept of income because AFS security unrealized gains and losses are reported in other comprehensive income.

23.The physical capital maintenance concept of income would require that an investment in the common stock of another entity be

a.Reported in the balance sheet at historical cost and that only realized gains and losses be reported in earnings.

b.Reported in the balance sheet at historical cost and that unrealized gains and losses be reported in earnings.

c.Reported in the balance sheet at fair value and that unrealized gains and losses be reported in earnings.

d.Reported in the balance sheet at fair value and that unrealized gains and losses be reported in other comprehensive income.

24.The economic concept of income would require that an investment in the common stock of another entity be

a.Reported in the balance sheet at historical cost and that only realized gains and losses be reported in earnings.

b.Reported in the balance sheet at historical cost and that unrealized gains and losses be reported in earnings.

c.Reported in the balance sheet at fair value and that unrealized gains and losses be reported in earnings.

d.Reported in the balance sheet at fair value and that unrealized gains and losses be reported in other comprehensive income.

25.Under the fair value option, an investment in the common stock of another entity will be

a.Reported as a current asset

b.Reported as a noncurrent asset

c.Reported as either a current or noncurrent asset depending on managerial intent.

d.Reported as a current asset only if it was not previously reported as an equity method investment.

26.When a company reports goodwill in its balance sheet, we know that

a.It was internally generated because the company has earnings in excess of those of other companies in the industry.

b.The company purchased it.

c.The company will be reporting amortization expense for the goodwill.

d.The company will not be reporting an impairment loss for the goodwill.