The balance in the Unrealized Loss-Equity account will
A) appear on the balance sheet as a contra asset.
B) appear on the income statement under Other Expenses and Losses.
C) appear as a deduction in the stockholders' equity section.
D) not be shown on the financial statements until the securities are sold.

Question

Quizplus · Accepted Answer

The balance in the Unrealized Loss-Equity account represents a decrease in the overall value of the company's investments. This balance will appear as a deduction in the stockholders' equity section of the balance sheet, since it represents a reduction in the value of the company's assets.

The Balance in the Unrealized Loss-Equity Account Will