Which Statement Is True Concerning Gains and Losses

question 134

Multiple Choice

Which statement is true concerning gains and losses?

• A)Gains and losses are reported on the balance sheet in the Assets and Liabilities sections, respectively.
• B)Gains and losses are special types of revenues and expenses that are reported on the income statement.
• C)The amounts of gains and losses are included in the calculation of the current ratio, in the numerator and denominator, respectively.
• D)Gains and losses are reported only on a multi-step income statement.

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Definitions:

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values from their mean, indicating how spread out the data points are.

Tolerance

The allowable deviation in a manufacturing or production process, defining the range within which output is considered acceptable.

Nominal Specification

The stated or targeted value for a parameter in a design or process, serving as a benchmark for quality control.