The balance in the Unrealized Gain or 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 Unrealized Gain or Loss-Equity account is a component of stockholders' equity and represents the cumulative gains or losses from changes in the market value of securities held by the company that have not been sold. The balance in this account is shown as a deduction in the stockholders' equity section of the balance sheet. It is not classified as an asset or expense and is not shown on the income statement.

The Balance in the Unrealized Gain or Loss-Equity Account Will