If an Ordinary Share Investment Is Sold at a Gain

question 68

Multiple Choice

If an ordinary share investment is sold at a gain, the gain

• A) is reported as operating revenue.
• B) is reported under a special section, "Discontinued investments," on the income statement.
• C) is reported in the Other income and expense section of the income statement.
• D) contributes to gross profit on the income statement.

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Definitions:

Waterboarding

A form of torture in which water is poured over a cloth covering the face and breathing passages of an immobilized captive, causing the individual to experience the sensation of drowning.

Toxic Assets

Financial assets whose value has fallen significantly and for which there is no longer a functioning market, making them difficult to sell without incurring a loss.

Initial Public Offering

The process by which a private company offers its shares to the public in a new stock issuance, often to raise capital.

"Wedge" Issues

Political or social issues introduced by a party or group to divide opponents or rally support by focusing on controversial matters.