Unrealized Gains or Losses on Short-Term Investments Are Reported Using

question 90

Multiple Choice

Unrealized gains or losses on short-term investments are reported using:

• A) a liability account
• B) an asset account
• C) an expense account
• D) a revenue account

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Definitions:

Capital Intensive

A business process or industry that requires significant financial investment in capital assets like machinery and equipment, versus labor or operational costs.

Fixed Costs

Expenses that do not change with the level of production or business activity.

Variable Costs

Expenses that change in proportion to the production output or sales.

Operating Leverage

The degree to which a company can increase its profits by increasing sales, highlighting the proportion of fixed costs in a company’s cost structure.