Which statement best describes the concept of realization as it applies to gain or loss?

Question

Quizplus · Accepted Answer

Realization refers to the event of an exchange of property rights in a transaction, which results in either a gain or loss. It represents the point at which the gain or loss is recognized for tax purposes. Therefore, option A is the correct statement that describes realization as it applies to gain or loss. Option B is incorrect because realization is not the same as recording. Option C and D are incorrect because they refer to the computation of gain or loss, not realization.

Which Statement Best Describes the Concept of Realization as It