Asked by
Georgina Duncan
on Nov 18, 2024Verified
When shares of stock held as an investment are sold, the difference between the proceeds and the balance of the investment account is recorded as a(n)
A) prior period adjustment
B) operating income and losses
C) paid-in capital addition
D) gain or loss
Investment Account
A financial account held at a financial institution that contains securities, cash, and other assets managed for the purpose of investment.
Operating Income
Earnings before interest and taxes (EBIT), a measure of a company's profit from operations before interest expenses and taxes have been deducted.
Paid-In Capital
The amount of capital "paid in" by investors during common or preferred stock issuances, including the par value of the shares and amounts over par value.
- Grasp the concept of recognizing gains or losses on the sale of investment securities.
Verified Answer
ST
Learning Objectives
- Grasp the concept of recognizing gains or losses on the sale of investment securities.