All recognized gains and losses must eventually be classified either as capital or ordinary.

Question

Quizplus · Accepted Answer

This is true as per the tax laws and accounting principles, all gains and losses are eventually classified as either capital or ordinary. Capital gains and losses are from the sale of capital assets held for more than a year, while ordinary gains and losses are from regular business activities and investments held for less than a year.

All Recognized Gains and Losses Must Eventually Be Classified Either