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:

Concrete Manifestations

Tangible or visible expressions of ideas, concepts, or phenomena that can be observed and measured in the real world.

Everyday Interactions

The routine, day-to-day exchanges and communications between people within any given society.

Social Institutions

Structures or mechanisms of social order governing the behavior of individuals within a given community, such as family, education, and government.

Dynamic Theory

A theoretical approach that emphasizes change and evolution in social, physical, or psychological systems.