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Asked by Shawntay Williams on May 01, 2024

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For available-for-sale securities the unrealized gain or loss account is carried forward to future periods.

Available-For-Sale Securities

Financial instruments that are not classified as held-to-maturity or trading securities, and are instead intended to be sold for reasons other than temporary declines in value.

Unrealized Gain

The potential profit that exists on paper resulting from an investment that has not yet been sold for cash.

Loss Account

An account that records the expenses that exceed revenues, indicating a negative financial performance over a period.

  • Identify the differences in accounting for trading, available-for-sale, and held-to-maturity securities.
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Naree DachruchaMay 01, 2024
Final Answer :
True
Explanation :
Unrealized gain or loss on available-for-sale securities is reported in the equity section of the balance sheet as a component of accumulated other comprehensive income (AOCI). It is carried forward to future periods until the securities are sold or disposed of, at which point the gain or loss is realized and recognized in the income statement.

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