When an Entity Sells a Non-Current Asset at a Profit

question 36

Multiple Choice

When an entity sells a non-current asset at a profit to another entity within the same group, which of the following adjustments is necessary on consolidation?

• A) Dr Gain on sale, CR Asset
• B) Dr Asset, CR Cash
• C) Dr Gain on sale, CR Cash
• D) Dr Asset, DR Gain on sale

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Definitions:

The Catcher in the Rye

A novel by J.D. Salinger, published in 1951, focusing on the experiences and thoughts of the young protagonist, Holden Caulfield, faced with the challenges of adolescence.

Silent Spring

A landmark environmental science book by Rachel Carson, published in 1962, which exposed the dangers of pesticides, leading to significant environmental protection movements.

DDT

A synthetic insecticide used historically for mosquito control, now largely banned due to its environmental toxicity.

Pesticides

Chemicals used to kill or control pests affecting plants or animals, including insects, weeds, and fungi, often used in agriculture to protect crops.