Which One of the Following Statements Related to Capital Gains

question 36

Multiple Choice

Which one of the following statements related to capital gains is correct?

• A)The capital gains yield includes only realized capital gains.
• B)An increase in an unrealized capital gain will increase the capital gains yield.
• C)The capital gains yield must be either positive or equal to zero.
• D)The capital gains yield is expressed as a percentage of the sales price.
• E)The capital gains yield represents the total return earned by an investor.

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Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been subtracted from total revenue.

Related Party Transaction

Financial transactions between entities that are considered to have a special relationship, such as companies with common ownership.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that aim to standardize financial reporting around the world.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle if longer.