A realized gain or loss is reported on the income statement when an investment account is adjusted to reflect changes in fair value.

Question

Quizplus · Accepted Answer

A realized gain or loss is reported on the income statement when an investment is sold or otherwise disposed of, not when it is adjusted for changes in fair value. Unrealized gains or losses from fair value adjustments are typically reported in other comprehensive income or directly in equity, depending on the accounting standards and the classification of the investment.

A Realized Gain or Loss Is Reported on the Income