When a trading debt security is disposed of,the amount of gain or loss is calculated as the difference between the cash received and the cost of the debt security disposed of.

Question

Quizplus · Accepted Answer

This is a correct statement. The gain or loss on the disposal of a debt security is calculated as the difference between the cash received from the sale and the cost of acquiring the security.

When a Trading Debt Security Is Disposed Of,the Amount of Gain