An Unrealized Loss on Available-For-Sale Securities Is

question 16

Multiple Choice

An unrealized loss on available-for-sale securities is

• A)reported under Other Expenses and Losses in the income statement.
• B)closed-out at the end of the accounting period.
• C)reported as a separate component of stockholders' equity.
• D)deducted from the cost of the investment.

---

Definitions:

Stock Split

A corporate action that increases the number of a company's shares by issuing more shares to current shareholders, thus reducing the price per share.

Common Stock Dividend

A portion of a company's earnings distributed to shareholders of its common stock, typically in the form of cash or additional shares.

Common Shares Outstanding

The total number of shares of a company that are owned by shareholders, excluding shares owned by the company itself.

Treasury Stock

Shares previously counted among a company's outstanding shares but were later bought back by the business.