If There Is an Unrealized Holding Gain on Available-For-Sale Investments,it

question 95

Multiple Choice

If there is an unrealized holding gain on available-for-sale investments,it is reported ________.

• A)as an adjustment to stockholders' equity on the balance sheet
• B)as a debit to the long-term assets
• C)as a separate line item on the income statement
• D)as a credit to the short-term assets

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Definitions:

Completed Contract

This accounting practice records the income and expenses of projects after they are finalized, ensuring financial statements only reflect finished work.

Percentage-of-Completion

An accounting method that recognizes revenues and expenses in relation to the completion percentage of a project.

Revenue Recognition

The accounting principle dictating the specific conditions under which income becomes recognized as revenue on the financial statements.

Accounting System

An accounting system is the method by which financial information is collected, processed, and reported to stakeholders.