Question

If there is an unrealized holding gain on​ available-for-sale debt​ investments, it is reported​ ________.

A. as an adjustment to​ stockholders' equity on the balance sheet
B. as a debit to the​ long-term liabilities
C. as a separate line item on the income statement
D. as a credit to the​ short-term assets g

Answer 1

A. as an adjustment to​ stockholders' equity on the balance sheet

Step-by-step explanation:

The unrealized holding gain or loss is reported on the balance sheet by increasing the stockholders equity component.