Stock Investments

stock investments
A decline in the fair value of short-term stock investments, an unrealized loss account is debited?

In recognizing a decline in the fair value of short-term stock investments, an unrealized loss account is debited because

a. management intends to realize this loss in the near future.
b. the securities have not been sold.
c. the stock market is volatile.
d. management cannot determine the exact amount of the loss in value.

its b) the securities have not been sold.

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