Asked by Hallie Adair on May 08, 2024
Verified
An unrealized gain or loss on trading securities is reported as a separate component of stockholders' equity.
Trading Securities
Securities bought and held primarily for sale in the near term to generate income on short-term price differences.
Unrealized Gain
The increase in value of an asset that has not been sold yet, therefore the gain is not reflected in the income statement.
- Recognize the reporting requirements for unrealized gains and losses.
Verified Answer
KR
Krystal ReyesMay 10, 2024
Final Answer :
False
Explanation :
Unrealized gains or losses on trading securities are reported as a separate component of accumulated other comprehensive income (AOCI), not stockholders' equity.
Learning Objectives
- Recognize the reporting requirements for unrealized gains and losses.
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