Question $3$

$2pt$

A net unrealized loss on a company's portfolio of investment securities considered available$-$for$-$sale should be reflected in the current financial statements as

An extraordinary item shown as a direct deduction from retained earnings.

A current loss on the income statement and a valuation to the securities on the balance sheet.

A footnote or parenthetical disclosure.

A valuation allowance to the securities and a deduction from the equity section on the balance sheet.

Not saved