Unrealized gains and losses on investments in trading securities are reported

Question

Quizplus · Accepted Answer

Unrealized gains and losses on investments in trading securities are reported on the income statement, typically under the heading "Other Income" or "Other Comprehensive Income." This is because trading securities are bought and sold frequently with the intention of profiting from short-term price changes, so gains and losses are considered part of the company's operating activities and therefore reported on the income statement.

Unrealized Gains and Losses on Investments in Trading Securities Are