The account Unrealized Gain (Loss) on Available-for-Sale Investments should be included on the
A) income statement as other revenue (expense)
B) balance sheet as an adjustment to the asset account
C) balance sheet as an adjustment to stockholders' equity
D) statement of retained earnings

Question

Quizplus · Accepted Answer

Unrealized gains or losses on available-for-sale investments are recognized in other comprehensive income and reported as a separate component of stockholders' equity on the balance sheet, not on the income statement or statement of retained earnings. This reflects the changes in fair value of the investments that have not yet been realized through sale.

The Account Unrealized Gain (Loss) on Available-For-Sale Investments Should Be