An Unrealized Loss Account on Available-For-Sale Securities Is

question 71

Multiple Choice

An unrealized loss account 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.

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Definitions:

Net Margin

A financial metric that represents the percentage of revenue remaining after all operating expenses, interest, taxes, and preferred stock dividends have been deducted.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.

Sales

The activity or process of selling products or services, which involves transactions between buyers and sellers.

Total Assets

The sum of all resources owned by an entity, including both current and fixed assets, representing the total value of what it owns.