The Balance in the Unrealized Gain on Investment in Available-For-Sale

question 151

Multiple Choice

The balance in the Unrealized Gain on Investment in Available-for-Sale Securities account is reported on the ________. The investments are classified as long-term.

• A)balance sheet as a contra asset account
• B)income statement under Other Expenses and Losses
• C)balance sheet, as part of the stockholders' equity section
• D)balance sheet, as part of Long-Term Investments

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Definitions:

Chain Of Distribution

The successive stages and parties involved in the distribution of a product from producer to ultimate consumer.

Implied Warranty

An unstated guarantee that a product will meet a minimum level of quality and functionality, which is presumed to exist by law.

Operation Of Law

A process by which rights or liabilities are automatically transferred without the need for an agreement or contract, usually by statute.

Implied Warranty

A legal presumption that a product will perform as expected based on its intended use, even if not explicitly stated.