The unrealized holding gains and losses on available-for-sale debt investments are recorded as an adjustment to the Unrealized Holding Gain-Available-for-Sale account or Unrealized Holding Loss-Available-for-Sale account.

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This statement is correct. Unrealized holding gains and losses on available-for-sale debt investments are recorded as an adjustment to the Unrealized Holding Gain-Available-for-Sale account or the Unrealized Holding Loss-Available-for-Sale account. These accounts are located in the stockholders' equity section of the balance sheet and are used to reflect changes in the fair value of available-for-sale debt securities that have not yet been sold.

The Unrealized Holding Gains and Losses on Available-For-Sale Debt Investments