Which of the Following Is Not True

question 131

Multiple Choice

Which of the following is not true?

• A)Gains (losses) are increases (decreases) in net assets from peripheral or incidental transactions of an entity and from other transactions and events affecting the entity except those that result from revenues (expenses) or investments by (distributions to) owners.
• B)Firms usually report gains and losses from sales of assets or settlements of liabilities at a net amount; that is, equal to the difference between the net asset received and the carrying value of the asset sold or between the net asset given and the carrying value of the liability settled.
• C)Gains and losses may arise from the remeasurement of assets and liabilities.
• D)Firms recognize gains and losses when they sell or exchange assets or settle liabilities in market transactions.
• E)Firms recognize gains and losses when those items enter the measurement of net income or other comprehensive income.

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Definitions:

Homestead Exemption

An exemption that allows a debtor to retain all or a portion of the family home so that the family will retain some form of shelter.

Personal Estate

All movable property belonging to an individual, including money, investments, and personal belongings, as opposed to real estate.

Judicial Lien

is a legal claim against a debtor's property granted by a court judgment, securing the payment of a judgment debt.

Legal Action

is the process of taking a dispute to a law court for resolution, often involving lawsuits or litigation.