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:

Developing Nations

Countries that are in the process of industrialization and have lower per capita income levels compared to developed countries.

Annual Revenues

The total amount of income generated by a business or organization from its activities over the course of a year.

Wal-Mart

A multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.

High-income Economies

Countries with a high gross national income per capita, according to classification by international financial institutions like the World Bank.