Ordinary Gains from the Sale of Fixed Assets Should Be

question 30

True/False

Ordinary gains from the sale of fixed assets should be reported in the other income section of the income statement.

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Definitions:

Investee Company

A company in which an investor holds a significant interest but not controlling stake.

GAAP

A set of widely adhered to accounting norms and standards that guide financial reporting, known as Generally Accepted Accounting Principles.

Fair Value

An estimate of the market value of an asset or liability based on current market prices or valuations.

Trading Securities

Financial assets that a company holds primarily for the purpose of selling them in the short term to profit from market price changes.