Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Specified investment business income does not include... Multiple Choice Dividends Rents Interest G
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- When investments measured at amortized cost are reclassified to FVOCI, the gain or loss recognized in profit or loss is equal to * a. zero b. the amount realized to date c. the amount from beginning of period to reclassification date d.the amount from acquisition date to reclassification date e.none of the abovearrow_forwardWhat is the fair-value option for reporting equity method investments? How do the equity method and fair-value accounting differ in recognizing income from an investee?arrow_forwardDescribe retained earnings and distinguish it from paid-in capital.arrow_forward
- Please answer with reason for all why the option is correct and why the other options are incorrectarrow_forward(i). Debt investments not plan to sell reported at a. amortized cost. b. fair value. c. the lower of amortized cost of fair value. d. net realizable value. (ii). which of the following caa be reported at fair value? a. Debt investments. b. Equity investments. c. Both debt and equity investments: d None of these answers' choices are correct.arrow_forwardFor fi nancial assets classifi ed as available for sale, how are unrealized gains and losses refl ected in shareholders’ equity?A . Th ey are not recognizedarrow_forward
- Which of the following is the definition of return on common equity?A. Net income / Average common equityB. Operating income / Average common equityC. Comprehensive income / Average common equityD. None of the abovearrow_forwardPlease describe how to account for market value and unrealized gains and losses for each of these investment categories: held-to-maturity, trading, and available-for-sale.arrow_forwardWhich of the below statements is false for equity? A. Limited liability B.Residual claim on firm value C.Payouts to equity holders must be made before interest payments D.Voting Rightsarrow_forward
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