When Transferring Investments Between Categories, Unrealized Holding Gains for Securities

question 102

Multiple Choice

When transferring investments between categories, unrealized holding gains for securities transferred from trading to available-for-sale

• A) must be realized on the income statement.
• B) must be recognized on the income statement.
• C) must be realized and reported in comprehensive income.
• D) need no accounting since they have already been recognized in net income.

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Definitions:

Business Letter

A formal document used in professional contexts to communicate with clients, partners, or within an organization.

Résumés

A structured document used by individuals to present their background, skills, and accomplishments for employment purposes.

Electronic Media

Platforms or channels used for communication that operate electronically, such as radio, television, and the internet.

Retail Factory

A facility that directly sells its products to consumers without involving intermediaries, typically offering goods at reduced prices.