When a Company Sells a Trading Investment, the Gain or Loss

question 115

Multiple Choice

When a company sells a trading investment, the gain or loss on the sale is reported in the:

• A) revenues section of the income statement.
• B) short-term investments section of the balance sheet.
• C) other revenue, gains, and losses section of the balance sheet.
• D) other revenue, gains, and losses section of the income statement.

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Definitions:

Operations Management

The administration of business practices aimed at ensuring maximum efficiency within a company, focusing on converting materials and labor into goods and services as effectively as possible.

Inputs

The resources—such as labor, money, materials, and energy—that are converted into outputs.

Transforming Resources

The assets, materials, and inputs used by a company to create products or deliver services efficiently.