When a Firm Sells a Trading Security,it Recognizes

question 33

Multiple Choice

When a firm sells a trading security,it recognizes:

• A) the average of the selling price and the book value as a gain or loss in measuring net income.
• B) the difference between the selling price and the book value as a gain or loss in measuring net income.
• C) amortizes any difference between the acquisition cost and maturity value as interest revenue over the life of the debt.
• D) the difference between the selling price and the acquisition cost of the security as a realized gain or loss on the income statement.

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Definitions:

Source Traits

Fundamental aspects of personality identified by Raymond Cattell that underlie and give rise to surface traits in different situations.

Common Traits

Characteristics or attributes that are shared among individuals within a population.

Uniqueness

Describes the distinct characteristics and qualities that differentiate one individual from another.

Environmental-mold Traits

Environmental-mold traits suggest that an individual's characteristics and behaviors are shaped or molded by their environment rather than inherited genetically.