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Esbeidy Torres
on Nov 13, 2024

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The account Unrealized Gain (Loss) on Available-for-Sale Investments should be included on the

A) income statement as other revenue (expense)
B) balance sheet as an adjustment to the asset account
C) balance sheet as an adjustment to stockholders' equity
D) statement of retained earnings

Unrealized Gain

A profit that exists on paper as a result of an investment increasing in value but has not yet been sold for cash.

Available-for-Sale Investments

Securities that are not classified as held-to-maturity or trading securities and can be sold in the short-term or kept for long-term holdings, with unrealized gains or losses reported in other comprehensive income.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing ownership interest in the company.

  • Describe the differences between trading securities, available-for-sale securities, and held-to-maturity securities.
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JM
Jenna MarsmanNov 15, 2024
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