Which Statement Is True Concerning Gains and Losses

question 225

Multiple Choice

Which statement is true concerning gains and losses?

• A) Gains and losses are reported on the balance sheet in the Assets and Liabilities sections, respectively.
• B) Gains and losses are special types of revenues and liabilities that are reported on the income statement.
• C) The amounts of gains and losses are included in the calculation of the current ratio, in the numerator and denominator, respectively.
• D) None of these choices.

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Definitions:

Working Papers

Documents that contain the data and analysis used by accountants and auditors as part of their examinations.

Data-Gathering Process

The systematic procedure of collecting, measuring, and analyzing accurate data for research or assessment purposes.

Conclusions Drawn

Inferences or judgments made after considering all the available evidence and arguments.

Conceptualizing Balance

The process of creating a harmonious or balanced framework for understanding or analyzing a concept or phenomenon.