When Accounting for Investments in Trading Securities, Any Decline in Market

question 12

Multiple Choice

When accounting for investments in trading securities, any decline in market value below cost of the investments is reported in which of the following ways?

• A) On the statement of earnings as a realized loss.
• B) On the statement of earnings as an unrealized holding loss.
• C) On the statement of financial position as a realized loss.
• D) On the statement of financial position as an unrealized holding loss in the stockholders' equity section.

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Definitions:

Rows Area

In spreadsheet applications, the part of the sheet that is identified by horizontal lines numbered sequentially to organize data.

Quarterly Details

Information or reports summarizing activities, financial performance, or statistics over a three-month period.

Field List Button

A control in database and spreadsheet software that allows users to choose fields to display in a report or form.

PivotTable Fields Pane

The section in Excel that allows users to choose fields from their dataset to add to a PivotTable for analysis.