The Balance in the Unrealized Gain on Investment in Available-For-Sale

question 151

Multiple Choice

The balance in the Unrealized Gain on Investment in Available-for-Sale Securities account is reported on the ________. The investments are classified as long-term.

• A)balance sheet as a contra asset account
• B)income statement under Other Expenses and Losses
• C)balance sheet, as part of the stockholders' equity section
• D)balance sheet, as part of Long-Term Investments

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Definitions:

Materials Price Variance

The difference between the actual cost of direct materials and the standard cost, multiplied by the actual quantity of materials purchased.

Labor Rate Variance

The difference between the expected cost of labor per unit of production and the actual cost, often used to identify efficiency and wage rate changes.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost allocated for the actual production volume, resulting from efficiency in variable overhead resource usage.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard cost of variable overhead allocated for the actual production level.