If a Stock Investment Is Sold at a Gain, the Gain

question 87

Multiple Choice

If a stock 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 Revenue and Gain section of the income statement.
• D) contributes to gross profit on the income statement.

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Definitions:

Invoice

A document issued by a seller to a buyer, detailing a transaction and requesting payment.

Payment

The transfer of money or goods from one party to another in exchange for goods, services, or to fulfill a legal obligation.

ROG

Depending on context, can refer to Receipt of Goods, indicating the time when goods are received and payment obligations begin.

Outstanding Balance

The amount of debt, or loan, that has not yet been repaid. It can change daily due to interest and payments.