An Unrealized Gain or Loss on Non-Trading Securities Is Reported

question 212

Multiple Choice

An unrealized gain or loss on non-trading securities is reported as a component of equity

• A) because this discloses to the financial statement user the gain or loss that would result if the securities were sold at fair value.
• B) because this treatment reduces the volatility of net income due to fluctuations in value.
• C) in a line item either called "Reserves" or "Unrealized Gain or Loss."
• D) All of these answer choices are correct.

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