
Available-for-Sale Securities:
These securities are regarded as short-term investments and are sold-off within a year. These are basically struck to pool investments so as to earn returns in the form of dividends and interests in comparatively shorter period of time. The return so generated as result of sale is either termed to be an unrealized gain or loss.
Unrealized Gain or Loss:
The unrealized gain or loss is the gain or loss that is not actually bore by the holder of security rather it is only a record of transaction that has not been completed. It is regarded as unrealized when at the end of accounting period the entity is left with unsold stock.
The reporting of unrealized gains or losses for investments in available-for-sale securities.

Want to see the full answer?
Check out a sample textbook solution
Chapter C Solutions
Connect 2 Semester Access Card for Financial and Managerial Accounting
- Bon Corporation has the following transactions: $820,000 operating income; $640,000 operating expenses; $55,000 municipal bond interest; $150,000 long-term capital gain; and $70,000 short-term capital loss. Compute Bon Corporation's taxable income for the year.arrow_forwardI need help with this financial accounting question using standard accounting techniques.arrow_forward4 PTSarrow_forward
- Can you help me solve this general accounting problem using the correct accounting process?arrow_forwardI need help with this general accounting question using standard accounting techniques.arrow_forwardCan you demonstrate the proper approach for solving this financial accounting question with valid techniques?arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





