Where are gains and losses on agricultural activity reported in the financial statements?
A)Gains are recorded through profit and loss, but losses should be recorded in other comprehensive income.
B)Losses are recorded through profit and loss, but gains should be recorded in other comprehensive income.
C)Gains and losses are recorded through profit and loss, and nothing should be recorded in other comprehensive income.
D)Gains and losses are recorded in other comprehensive income, and nothing should be recorded through profit and loss.

Question

Quizplus · Accepted Answer

Gains and losses from agricultural activity should be recorded through profit and loss, which is the appropriate section of the financial statement for reporting revenue and expenses related to operating activities. Other comprehensive income is used for items that are not reported through profit and loss, such as unrealized gains and losses on investments or foreign exchange translations. Therefore, it would not be appropriate to record gains or losses on agricultural activity in other comprehensive income.

Where Are Gains and Losses on Agricultural Activity Reported in the Financial