An Unrealized Holding Loss Is Reported on the Income Statement

question 6

True/False

An unrealized holding loss is reported on the income statement when the fair value of a trading security is less than its fair value reported in the prior period.

---

Definitions:

Minor Expenditures

Small or insignificant costs that are usually of a non-recurring nature and may not be capitalized.

Discounted Note

A debt instrument sold for less than its face value that will pay the face value at maturity, effectively providing interest to the holder.

Notes Receivable

Financial assets representing amounts owed to a company, promised to be paid back with interest.

Accounts Receivable Assigned

A financing arrangement where a company uses its receivables as collateral to secure a loan.