The account Unrealized Gain on Trading 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 stockholder's equity

Question

Quizplus · Accepted Answer

Unrealized gains on trading investments are included in the income statement as they represent changes in the fair value of securities that have not yet been sold. This impacts the net income for the period in which the change in value occurs.

The Account Unrealized Gain on Trading Investments Should Be Included