Unrealized gains and losses on available-for-sale securities are used to compute net income.

Name: Unrealized gains and losses on available-for-sale securities are used to compute net income.
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Question

Quizplus · Accepted Answer

Unrealized gains and losses on available-for-sale securities are not used to compute net income. They are reported in the other comprehensive income section of the statement of comprehensive income. Net income is computed by subtracting expenses from revenues.

Unrealized Gains and Losses on Available-For-Sale Securities Are Used to Compute