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 never arise from the remeasurement of assets and liabilities.
d. Firms realize 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.
C
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If an employee forfeits a stock option because of failure to satisfy a service requirement, the company should record paid-in capital from expired options
a. true b. false
The buyer breach the purchase and sale agreement and forfeited the earnest money deposit. Assuming that a typical listing agreement was used in no special expenses were incurred on the seller's behalf, what will happen to the earnest money deposit?
a. The entire deposit belongs to the listing brokerage. b. The entire deposit belongs to the seller. c. The deposit will be split evenly between the listing brokerage and the seller. d. The deposit will be split evenly between listing Brokerage in the selling brokerage.