An Unrealized Gain on a Trading Security

question 94

Multiple Choice

An unrealized gain on a trading security:

• A)is recorded when a trading security is sold for more than its cost.
• B)is recorded when a trading security is sold for less than its cost.
• C)is recorded when the fair value of the trading security is more than its cost.
• D)is recorded when the fair value of the trading security is less than its cost.

---

Definitions:

Dollar Amount

A numeric monetary value measured in units of the currency dollar.

Preferred Stock

A type of stock that gives holders preferential treatment over common stockholders, usually through dividends and upon liquidation.

Common Stock

Equity ownership in a corporation, with voting rights and potential for dividends.

Dividend

A distribution of profits by a company to its shareholders, typically in the form of a payment.