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In stockholder's equity, a loss in fair value for AFS securities is recorded as a debit/credit?

1) Debit
2) Credit

User Kafuchau
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Final answer:

In stockholder's equity, a loss in fair value for AFS securities is recorded as a debit.

Step-by-step explanation:

When a loss in fair value for Available-for-Sale (AFS) securities is recorded in stockholder's equity, it is recorded as a debit. AFS securities are investments in debt or equity securities that are not classified as either trading or held-to-maturity securities. The loss in fair value represents a decrease in the value of the securities, so it is recorded as a debit to reflect the reduction in stockholder's equity.

User Nixmd
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