How do U.S.companies recognize transaction gains and losses in the financial statements?

Question

Quizplus · Accepted Answer

U.S. companies recognize transaction gains and losses in the income statement. These gains or losses are included in determining the net income of the company for the period. The income statement reflects the financial performance of the company for a given period, including all gains and losses from transactions. Option B is incorrect as gains and losses are not recognized in owners' equity. Option C is incorrect as losses are also recognized in the income statement. Option D is incorrect as gains are recognized in the income statement, not in owners' equity.

How Do USCompanies Recognize Transaction Gains and Losses in the Financial Statements