For which of the following classes of securities are unrealized gains and losses included as a component of capital?
A)Held-to-maturity
B)Available-for-sale
C)Trading
D)all of the above
E)a.and c.only

Question

Quizplus · Accepted Answer

Unrealized gains and losses for available-for-sale securities are reported as a component of accumulated other comprehensive income, which is included in shareholders' equity, making it a component of capital. For held-to-maturity securities, unrealized gains and losses are not recognized in the financial statements unless the security is impaired. For trading securities, unrealized gains and losses are recognized in the income statement as part of net income.

For Which of the Following Classes of Securities Are Unrealized