Question

An unrealized holding gain on a company's available-for-sale securities should be reflected in the current financial statements as:

A) Other Comprehensive Income (OCI)

B) Retained Earnings

C) Common Stock

D) Cash Flow from Investing Activities

Answer 1

An unrealized holding gain on a company's available-for-sale securities should be reflected in the current financial statements as Other Comprehensive Income (OCI). OCI is used to report gains and losses on certain financial instruments that are not included in net income.

Step-by-step explanation:

An unrealized holding gain on a company's available-for-sale securities should be reflected in the current financial statements as Other Comprehensive Income (OCI). OCI is used to report gains and losses on certain financial instruments that are not included in net income because they are considered to be temporary and not realized. It is an important component in measuring a company's total comprehensive income.