When a Firm Sells a Trading Security,it Recognizes

question 33

Multiple Choice

When a firm sells a trading security,it recognizes:

• A) the average of the selling price and the book value as a gain or loss in measuring net income.
• B) the difference between the selling price and the book value as a gain or loss in measuring net income.
• C) amortizes any difference between the acquisition cost and maturity value as interest revenue over the life of the debt.
• D) the difference between the selling price and the acquisition cost of the security as a realized gain or loss on the income statement.

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Definitions:

Reconciles

Reconciles means to restore friendly relations between parties or to make one belief or action compatible with another.

Teen

A person aged between 13 and 19 years, characterized by adolescence, a period of transition from childhood to adulthood.

Sexual Debut

The age or occasion at which an individual first engages in sexual intercourse.

Sexual Intercourse

The act of physical union between individuals typically involving sexual organs, often associated with reproduction but can also occur for pleasure.