Q 30 Question 30 An unrealized loss on available-for-sale securities is … Select one: a. reported under Other Expenses and Losses in the income statement. b. deducted from the cost of the investment. c. reported as a separate component of stockholders equity. d. closed-out at the end of the accounting period.

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Why are unrealized gains and losses from available-for-sale securities not reported as a component of net income? Select one: a. Because goodwill exists that must be separately accounted for b. Because the investor has the ability to exercise significant influence over the investee c. Because consolidated financial statements must be prepared d. Because large swings in market value over which management has no control may distort current period performance as measured by net income

10. The carrying value of available-for-sale debt and equity securities is a. historical costb. the current market valuec. the lower of cost or current market valued. the higher of cost or current market value