If There Is an Unrealized Holding Gain on Available-For-Sale Investments,it

question 95

Multiple Choice

If there is an unrealized holding gain on available-for-sale investments,it is reported ________.

• A)as an adjustment to stockholders' equity on the balance sheet
• B)as a debit to the long-term assets
• C)as a separate line item on the income statement
• D)as a credit to the short-term assets

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Definitions:

Estoppel

A legal principle preventing someone from arguing something contrary to a claim previously made or acted upon in good faith.

Waiver

The intentional relinquishment of a known right. It is a voluntary act and implies an election by the party to dispense with something of value, or to forgo some advantage that he or she might have demanded and insisted on.

Personal Satisfaction

A contractual condition requiring an obligation to be performed to the personal satisfaction of one of the parties involved, subject to reasonable criteria.

Intercontinental Ballistic Missile

A guided ballistic missile with a minimum range of more than 5,500 kilometers, primarily designed for nuclear weapons delivery.