An Investor in Trading Securities Has the Following Information Available

question 106

Multiple Choice

An investor in trading securities has the following information available at December 31,2012: How does the investor report the change in market value on the trading securities at December 31,2012?

• A)unrealized loss of $1,000 on income statement
• B)unrealized gain of $1,000 on income statement
• C)$1,000 is added to other comprehensive income account on the balance sheet
• D)$1,000 is subtracted from the other comprehensive income account on the balance sheet

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Definitions:

Dividends

Money given by a business to its stock owners, which comes from the profits the company has made.

Dividend Payments

Payments made by a corporation to its shareholders, usually derived from the company's profits.

Substantial Growth

A significant increase in a company's revenue, profits, or size within a short period of time.

Selling Stock

The act of offering shares of a private corporation to the public in a new stock issuance, allowing the seller to raise capital from public investors.