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.
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter6: Accounting Quality
Section: Chapter Questions
Problem 11QE
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Question
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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