easy · Financial Accounting accounting-cycle-financial-statements
A firm has $50,000 of available-for-sale (AFS) debt securities. At year-end, the market value has risen to $52,000.
How is this $2,000 gain reported?
- As a component of Other Comprehensive Income (OCI)
- As a direct increase to Retained Earnings
- Deferred and unreported until the security is sold
- Reported as Other Income on the Income Statement
Sign up free to see the explanation and track your rank →
More Financial Accounting accounting-cycle-financial-statements practice
- Which of the following describes the immediate impact on the accounting equation?
- Which of the following accounts is a temporary (nominal) account that must be closed to ze
- What is the necessary adjusting journal entry?
- If employees work 8 hours per day, what is the required wage accrual?
- Under ASC 842, a lessee classifies a lease as 'Operating'. How is the periodic lease expen
- A company holds an investment in bonds classified as 'Availa… — Where is this gain reporte
- What is the balance in the Prepaid Insurance account on the December 31 Balance Sheet?
- What is the final entry to record the share issuance?