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Which of the Following Statements About Recognizing Gains and Losses

Question 40

Multiple Choice

Which of the following statements about recognizing gains and losses on capital assets in the financial statements is true?


A) Unrealized gains and losses are never recognized.
B) Unrealized gains are never recognized, but unrealized losses are always recognized.
C) Unrealized gains are always recognized and unrealized losses are sometimes recognized.
D) Unrealized gains are never recognized and unrealized losses are sometimes recognized.

Correct Answer:

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