Asked by Bennie Raymond on Jun 09, 2024
Verified
The account Unrealized Loss on Trading Investments should be included on the
A) income statement as other revenue
B) income statement as other expense
C) balance sheet as an adjustment to the asset account
D) balance sheet as an adjustment to stockholders' equity
Unrealized Loss
A decrease in the value of an investment that has not yet been sold for cash.
Trading Investments
Assets that a company holds primarily for the purpose of selling them in the near term to generate income.
- Understand the procedures and reporting involved with investments in financial documentation.
Verified Answer
MM
Mansi MehindruJun 13, 2024
Final Answer :
B
Explanation :
Unrealized losses on trading investments are reported on the income statement as other expenses because they represent decreases in the fair value of securities that have not yet been sold.
Learning Objectives
- Understand the procedures and reporting involved with investments in financial documentation.
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