The Journal Entry to Record the Sale of an Investment

question 72

Multiple Choice

The journal entry to record the sale of an investment includes a loss on sale of investment for $500.The income statement will reflect:

• A) a decrease in shareholders' equity $500
• B) other income/loss of $500
• C) nothing, since the entry impacts only asset accounts
• D) a decrease in net sales of $500

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Definitions:

Myelination

The process of forming a myelin sheath around the nerves, which increases the speed and efficiency of electrical impulses in the nervous system.

Hippocampus

A major component of the brain involved in memory formation and spatial navigation, located in the inner part of the temporal lobe.

Working Memory

A cognitive system with a limited capacity that is responsible for temporarily holding information available for processing.

Sponge Shaped

Describes objects or materials having the porous, absorbent characteristics of a sponge, often implying a specific form or texture.