The Orbus Company has a 30,000 unrealized gain and a 10,000 unrealized loss.Where would Orbus Company report these transactions?
A) Only in non-current assets and liabilities
B) In stockholders' equity
C) Other comprehensive income
D) On the balance sheet as a current asset

Question

Quizplus · Accepted Answer

Unrealized gains and losses are reported in the other comprehensive income section of the balance sheet, which is a component of stockholders' equity. This section is used to report items that have not yet been realized but may impact future financial statements. Therefore, option C is the best choice. Option A and D are incorrect as unrealized gains and losses are not reported as non-current assets or current assets on the balance sheet. Option B is incorrect as this section of the balance sheet is used to report items such as retained earnings and treasury stock, which are not related to unrealized gains and losses.

The Orbus Company Has a 30,000 Unrealized Gain and a 10,000