What type of cash results from the sale or exchange of the account's investment?

The type of cash that results from the sale or exchange of an account's investment is referred to as principal cash. This term specifically relates to the original amount invested or the capital that was used to purchase the investment in the first place. When an investment is sold or exchanged, the cash received reflects the return of the principal amount, and any gains or losses would typically be considered as income resulting from that transaction.

Principal cash is distinct because it pertains to the recovery of the original investment rather than income generated by the investment. For example, if an investor sells shares of stock for more than what they initially paid, the cash received is considered principal cash, but any profit on the transaction would be classified as income. This clear distinction helps in financial reporting and investment analysis, as it separates the recovery of invested capital from the earnings derived from investments.