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:

Operating Divisions

Distinct segments within a company, each responsible for certain operational aspects or market services.

Adjustment

A change made to the book value of an asset or liability to accurately reflect its value.

Subsidiary

A company that is completely or partly owned and partly or wholly controlled by another company.

FIFO Inventory Reporting

An approach to reporting inventory where the oldest stock is recorded as sold first; reiterates the First-In, First-Out method in financial statements.