Securities that require unrealized gains or losses to be recorded as a change in stockholder's equity are called:
A) held-to-maturity securities.
B) trading account securities.
C) available-for-sale securities.
D) revenue securities.
E) repurchase agreements

Question

Quizplus · Accepted Answer

Available-for-sale securities require unrealized gains or losses to be recorded as a change in stockholder's equity. Held-to-maturity securities are valued at amortized cost, while trading account securities are valued at fair market value with unrealized gains or losses recorded in net income. Revenue securities are not a recognized category of securities. Repurchase agreements can refer to various types of securities transactions and are not necessarily related to unrealized gains or losses.

Securities That Require Unrealized Gains or Losses to Be Recorded