If an Ordinary Share Investment Is Sold at a Gain

question 68

Multiple Choice

If an ordinary share 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 income and expense section of the income statement.
• D) contributes to gross profit on the income statement.

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Definitions:

Morphemic

Pertaining to morphemes, which are the smallest units of meaning in a language.

Platonic

A type of relationship or love that is intimate and affectionate but not sexual.

Mnemonic

A technique or strategy designed to assist in memorizing information by making it easier to recall, such as through acronyms or rhymes.

Functional

Capable of operating or serving a purpose effectively.