Asked by
Ramon Trejo
on Nov 13, 2024Verified
The balance in the Unrealized Gain or Loss-Equity account will
A) appear on the balance sheet as a contra asset.
B) appear on the income statement under Other Expenses and Losses.
C) appear in the stockholders' equity section.
D) not be shown on the financial statements until the securities are sold.
Unrealized Gain or Loss-Equity
Increases or decreases in the value of held investments that have not yet been sold, affecting the equity portion of the balance sheet.
Stockholders' Equity
The net worth of a company, calculated as total assets minus total liabilities, representing the ownership interest of shareholders in the corporation.
Contra Asset
An account that offsets an associated asset account, with common examples being accumulated depreciation and allowance for doubtful accounts.
- Detect the prerequisite and portrayal of unrealized gains or losses on investments and their influence upon financial statements.
Verified Answer
JZ
Learning Objectives
- Detect the prerequisite and portrayal of unrealized gains or losses on investments and their influence upon financial statements.