Franklin, Inc., accumulates large amounts of excess cash throughout the year. It typically invests these funds in marketable securities, both short term and long term. The companys most recent financial statements revealed a net unrealized loss on marketable securities of $100,000. Footnotes to the financial statements disclosed that Franklin, Inc., reports its marketable securities at fair value.

b. How does the net unrealized holding loss impact the companys financial statements?

check all that apply

It appears in an account in Franklin's income statement.

It increases the asset amount.

It decreases the asset amount.

The recognition of this loss does not involve any cash flow.

The recognition of this loss involves cash flow.