Asked by HAM?T C?HAN on May 29, 2024
Verified
Gains incurred in selling or trading assets are always recognized.
Gains Incurred
Increases in equity (excluding contributions from owners) that stem from peripheral or incidental transactions of a company.
- Gain an understanding of the accounting procedures for asset swap transactions and the computation of gain or loss.
Verified Answer
AK
Ayzen KenpachiMay 29, 2024
Final Answer :
False
Explanation :
Gains incurred in selling or trading assets are not always recognized immediately due to accounting principles like the realization principle, which requires that revenue is recognized only when it is earned and realizable.
Learning Objectives
- Gain an understanding of the accounting procedures for asset swap transactions and the computation of gain or loss.