All of the following statements about financial statement gains and losses on debt investments are true except
A) the account "Fair Value Adjustment - Available-For-Sale" is reported on the balance sheet.
B) unrealized losses on trading securities are reported on the income statement.
C) unrealized losses on available-for-sale securities are reported on the income statement.
D) the account "Fair Value Adjustment - Trading" is reported on the balance sheet.

Question

Quizplus · Accepted Answer

Unrealized losses on available-for-sale securities are reported in the statement of comprehensive income, not the income statement. The other statements are true. The account "Fair Value Adjustment - Available-For-Sale" is reported on the balance sheet, while unrealized losses on trading securities are reported on the income statement. The account "Fair Value Adjustment - Trading" is also reported on the balance sheet.

All of the Following Statements About Financial Statement Gains and Losses