Which One of the Following Types of Losses Is Excluded

question 103

Multiple Choice

Which one of the following types of losses is excluded from the determination of net income on the statement of income?

• A) Material losses resulting from transactions in the company's investments account.
• B) Material losses resulting from unusual sales of assets not acquired for resale.
• C) Material losses resulting from the write-off of intangibles.
• D) Material losses resulting from correction of errors related to prior periods.

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Definitions:

New Partner

A term referring to an individual or entity that joins an existing partnership, bringing in new capital or skills to the business.

Bonus

Extra payment awarded to employees as an incentive or reward beyond their normal compensation.

Net Assets

The total assets of an entity minus its total liabilities.

Capital Account

Part of a country's balance of payments, it records the net change in ownership of national assets.