When a Company Sells a Trading Security, the Gain on the Sale

question 74

Multiple Choice

When a company sells a trading security, the Gain on the Sale of Trading Securities is reported in the:

• A)stockholders' equity section of the balance sheet.
• B)short-term investments section of the balance sheet.
• C)other revenue, gains, and losses section of the balance sheet.
• D)other revenues and gains of the income statement.

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Definitions:

Body

The physical structure of a person or an animal, including the bones, flesh, and organs.

ECG Electrodes

Small, adhesive pads used during an electrocardiogram test to detect and record the electrical activity of the heart.

Lower Leg

The part of the leg between the knee and the ankle, consisting of the calf and shin regions.

Electrocardiogram

A graphic record of the electric currents generated by the heart; a tracing of the heart action; may also be referred to as an ECG or EKG.