Selected unrealized gains (or losses)sometimes bypass the income statement and are reported as direct adjustments to a stockholders' equity account.

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This statement is true. Unrealized gains or losses on certain types of investments or assets, such as available-for-sale securities, are reported as direct adjustments to the accumulated other comprehensive income (OCI) account within stockholders' equity, rather than being included in the income statement. This helps to avoid volatility in reported earnings from fluctuations in the market value of these assets.

Selected Unrealized Gains (Or Losses)sometimes Bypass the Income Statement and Are