Which of the Following Transactions Will Most Likely Result in a Loss

question 58

Multiple Choice

Which of the following transactions will most likely result in a loss reported on the income statement?

• A) A shoe store acquires a large supply of shoe polish from a supplier going through bankruptcy.
• B) A manufacturer pays a company a fee to license that company's proprietary technology.
• C) A bank pays more interest than expected on customers' savings accounts.
• D) A grocery store sells marketable securities after a decline in value.

---

Definitions:

Adolescent

An individual in the developmental stage of transition from childhood to adulthood, typically characterized by significant physical, psychological, and social changes.

Toddler

A toddler is a young child, typically between the ages of one and three, who is starting to walk and develop cognitive and social skills.

Preschooler

A child who has not yet reached the age for kindergarten or formal schooling, generally between the ages of 3 and 5 years.

Elementary Schoolchild

A child attending elementary or primary school, typically in the age range of 5 to 12 years.