If an Investment in an Associate Is Sold at a Gain

question 68

Multiple Choice

If an investment in an associate 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 Revenues and Gains section on the income statement.
• D)contributes to gross profit on the income statement.

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Definitions:

F-Distribution

A probability distribution used in analysis of variance, described by degrees of freedom and central to calculating F statistics.

Null Hypothesis

A hypothesis that suggests there is no statistical significance in a set of given observations, assuming no effect or no difference.

Degrees of Freedom

The count of distinct values or amounts that can be allocated to a statistical distribution after subtracting the estimated parameters.

Computed F Statistic

A value calculated in analysis of variance (ANOVA) used to compare the variances within groups to the variance between groups in a dataset.