An increase or decrease in the market value of a company's investments in securities is ________.
A)a realized gain or loss
B)considered to be either other gain or other loss on the income statement
C)an unrealized gain or loss
D)treated as an operating income or expense

Question

Quizplus · Accepted Answer

An increase or decrease in the market value of a company's investments in securities is an unrealized gain or loss, as it has not yet been realized through a sale. It is not considered realized until the security is sold, at which point it would be classified as a realized gain or loss. It is also not treated as an operating income or expense. Depending on the nature of the investment, it may be considered other comprehensive income or other gain or loss on the income statement.

An Increase or Decrease in the Market Value of a Company's