If an Investment in an Associate Is Sold at a Gain

question 38

Multiple Choice

If an investment in an associate is sold at a gain, the gain

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

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Definitions:

Colour-Blind

The inability to perceive differences between some of the colors that others can distinguish.

Vision

The ability to see or the faculty of sight; it can also refer to the capacity to envisage future developments and work towards them.

Information Processing

Involves the analysis and manipulation of incoming information by the brain, similar to how computers handle data.

Sensation

The process by which our sensory receptors and nervous system receive and represent stimulus energies from our environment, giving rise to our experiences of sight, sound, taste, touch, and smell.