Unrealized Gains or Losses on Available-For-Sale Securities Are Reported Where

question 116

Multiple Choice

Unrealized gains or losses on available-for-sale securities are reported where in the financial statements?

• A) Nowhere since only realized gains are reported.
• B) In the "Other revenues and gains" or "Other expenses and losses" sections of the income statement.
• C) Below extraordinary items in the income statement.
• D) In the stockholders' equity section of the balance sheet.

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Definitions:

Cost of Capital

The rate of return a company must earn on its investment projects to maintain its market value and attract funds.

Annual Rate of Return

The percentage of profit or loss on an investment over one year.

Accounting Data

Information and records concerning the financial transactions and status of a business, including ledgers, journals, financial statements, and more.

Time Value of Money

The idea that having money in the present is more valuable than having the same sum in the future because of its ability to generate earnings.