A Net Unrealized Loss on a Company's Long-Term Portfolio of Available

question 11

Multiple Choice

A net unrealized loss on a company's long-term portfolio of available for sale securities should be reflected in the current financial statements as

• A)An extraordinary item shown as a direct reduction from retained earnings
• B)A current loss resulting from holding marketable equity securities
• C)A footnote or parenthetical disclosure only
• D)A component of other comprehensive income

---

Definitions:

Obligation

A duty or commitment to pay money or perform some action.

Equivalent

Equal in value, amount, function, meaning, or status; often used in mathematics to describe expressions or amounts that are the same when compared or evaluated.

Compounded Quarterly

Refers specifically to the computation of interest at four intervals in a year, on the initial investment alongside the interest from preceding periods.

Repaid

The act of paying back money previously borrowed from a lender.