Asked by
Daisy Mendoza
on Oct 28, 2024
Verified
Which of the following statements is correct?
A) Any unrealized holding gain or loss on debt investments in trading securities is reported on the income statement.
B) Any unrealized holding gain or loss on debt investments in available-for-sale securities is reported on the income statement.
C) All unrealized gains and losses on debt investments are reported on the income statement regardless of the method used to account for the investment.
D) All unrealized holding gains and losses on debt investments are reported as a component of Other Comprehensive Income regardless of the method used to account for the investment.
Unrealized Holding Gain
The increase in value of an asset that has not been sold, hence the gain is not realized as actual profit.
Other Comprehensive Income
Income that includes all changes in equity except those resulting from investments by owners and distributions to owners.
- Understand the accounting methods for unrealized holding gains and losses across different investment types.
Verified Answer
AZ
Learning Objectives
- Understand the accounting methods for unrealized holding gains and losses across different investment types.
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