Which of the Following Gains Does Not Result Solely in an Ordinary

question 76

Multiple Choice

Which of the following gains does not result solely in an ordinary gain or loss?

• A) Sale of equipment held for less than a year.
• B) Sale of inventory.
• C) Sale of equipment where the gain realized exceeds the accumulated depreciation.
• D) Sale of equipment where the accumulated depreciation exceeds the gain realized.
• E) None of these.

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Definitions:

Quality of Income

A measure of how easily a firm's accounting income can be converted into cash, reflecting the company's financial stability.

Price/Earnings Ratio

A financial ratio that measures a company's share price relative to its earnings per share, indicating how much investors are willing to pay per dollar of earnings.

Dividend Yield

A monetary ratio demonstrating the proportion of yearly dividends distributed by a corporation in relation to its share value.