For available-for-sale equity securities,the Unrealized Loss on Long-Term Investments account should be reported as a(n)
A)realized loss item on the income statement.
B)prior period adjustment.
C)contra-asset on the balance sheet.
D)other comprehensive income (loss).

Question

Quizplus · Accepted Answer

Unrealized Loss on Long-Term Investments for available-for-sale equity securities should be reported as other comprehensive income (loss) on the balance sheet. Unrealized gains and losses on available-for-sale securities are not recognized on the income statement until they are sold. Therefore, they are reported as a separate component of other comprehensive income on the balance sheet.

For Available-For-Sale Equity Securities,the Unrealized Loss on Long-Term Investments Account