A Company Has a Long-Term Investment in Available-For-Sale Securities

question 11

Multiple Choice

A company has a long-term investment in available-for-sale securities.The Unrealized Gain on (long-term) Investment in Available-for-Sale Securities is reported as:

• A)Other Comprehensive Income in the Statement of Comprehensive Income.
• B)Other Gains on the income statement.
• C)Accumulated Other Comprehensive Income on the balance sheet.
• D)A and C.

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Definitions:

Cumulative Share

The total percentage or portion of something that accumulates over time or through successive additions.

Families Earned

Refers to the income generated by household members through employment or other sources of earnings.

Income

Financial earnings received by an individual or entity, typically measured over a set period and derived from work, investments, or other sources.

Perfect Equality Line

In the context of income distribution, a theoretical line indicating equal income or wealth distribution among all participants.