When Dealing with Gains and Losses on Trading Securities

question 1

Multiple Choice

When dealing with gains and losses on trading securities:

• A) the word "realized" must be used in the account title.
• B) unrealized gains and losses must be labeled "unrealized."
• C) unrealized gains go on the balance sheet and realized gains go on the income statement.
• D) unrealized losses and realized losses are both part of other expenses on the income statement.

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Definitions:

Yellow Dog Contract

An employment agreement where the worker promises not to join a labor union during the term of employment, now illegal in many jurisdictions.

Union Workers

Employees who are members of a labor union, which represents their interests in negotiations with employers.

Employers

Individuals or organizations that hire and pay people to work for them, typically controlling the terms of employment.

Norris-LaGuardia Act

A 1932 United States federal law that limited the power of federal courts to issue injunctions against non-violent labor disputes and marked a shift towards protecting labor rights.