Asked by Alanna Cooperman on Jun 08, 2024
Verified
Any difference between the fair values of the securities and their cost is a realized gain or loss.
Realized Gain
The profit made from selling an asset at a higher price than its purchase cost.
Fair Values
the estimated market value of an asset or liability, based on current prices in an open and competitive market.
- Ascertain the consequences of acquisition, disposal, and possession of investments on financial accounts.
Verified Answer
AW
Ayana WashingtonJun 09, 2024
Final Answer :
False
Explanation :
The difference between the fair values of the securities and their cost represents an unrealized gain or loss, which becomes realized only when the securities are actually sold.
Learning Objectives
- Ascertain the consequences of acquisition, disposal, and possession of investments on financial accounts.