The Balance in the Unrealized Gains and Losses on Available-For-Sale

question 131

Multiple Choice

The balance in the Unrealized Gains and Losses on Available-for-sale Securities account appear in which financial statement?

• A) The balance sheet as a contra asset account.
• B) The income statement under Other Expenses and Losses.
• C) The balance sheet, as part of the stockholders' equity section.
• D) Not shown on the financial statements until the securities are sold.

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Definitions:

Commercial Paper

Commercial Paper is an unsecured, short-term debt instrument issued by corporations, typically for the financing of operating expenses and meeting short-term liabilities.

Maturity

The date when a financial instrument (like a bond) expires and the principal is to be paid back to creditors.

Annual Interest Rate

The percentage increase in money lent or invested over a one-year period, expressed as a percentage of the principal.

Cash Conversion Cycle

A metric that measures the time between when a company pays for its inventory and when it receives cash from selling it.