Which of the Following Is Not Reported by an Affiliated

question 27

Multiple Choice

Which of the following is not reported by an affiliated group on a consolidated basis?

• A)capital gain
• B)section 1231 gain
• C)casualty & theft gain
• D)All of the above are included.

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Definitions:

Profit or Loss Test

The profit or loss test is a method used to determine if a business activity or transaction is able to generate a profit or results in a loss.

Operating Segments

Business units of a corporation that generate revenues and incur expenses, and for which separate financial information is available and evaluated regularly by the chief decision maker.

Reportable

Information or events significant enough to be disclosed in financial statements or to regulatory bodies.

Operating Segment

A component of a company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses related to transactions with other components of the same company.