The balance in the Unrealized Gain or Loss-Equity account will
A) appear on the balance sheet as a contra asset.
B) appear on the income statement under Other Expenses and Losses.
C) appear in the stockholders' equity section.
D) not be shown on the financial statements until the securities are sold.

Question

Quizplus · Accepted Answer

The Unrealized Gain or Loss-Equity account is a component of the stockholders' equity section of the balance sheet. It represents the net change in value of securities that a company holds but has not yet sold. It is not considered a contra asset or an expense, and it is not shown on the income statement.

The Balance in the Unrealized Gain or Loss-Equity Account Will