The Account Unrealized Gain (Loss) on Available-For-Sale Investments Should Be

question 61

Multiple Choice

The account Unrealized Gain (Loss) on Available-for-Sale Investments should be included on the

• A) income statement as other revenue (expense)
• B) balance sheet as an adjustment to the asset account
• C) balance sheet as an adjustment to stockholders' equity
• D) statement of retained earnings

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Definitions:

Credit Memo

A document issued by a seller to a buyer, reducing the amount that the buyer owes to the seller under the terms of an earlier invoice.

Note Receivable

A financial asset representing the right to receive a specific amount of money, either on demand or at a specified future date.

Company's Records

Documentation and files that contain important information about a company's operations, financial transactions, and legal obligations.

Outstanding Checks

Checks that have been written and recorded in the issuing entity's accounting system but not yet cashed or cleared by the bank.