If the Entity Has a Discontinued Operation, Then It Must

question 16

Multiple Choice

If the entity has a discontinued operation, then it must also calculate and disclose the:

• A) basic earnings per share ratio only for the discontinued operation in the statement of profit or loss and other comprehensive income.
• B) diluted earnings per share ratio only for the discontinued operation in the statement of profit or loss and other comprehensive income.
• C) basic and diluted earnings per share ratios for the discontinued operation in the statement of profit or loss and other comprehensive income.
• D) basic and diluted earnings per share ratios for the discontinued operation in the statement of profit or loss and other comprehensive income only if the discontinued operation contributed a profit in the current reporting period.

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Definitions:

Repudiation

The refusal to fulfill or acknowledge contractual obligations, often leading to a breach of contract claim.

Material Breach

A significant violation or failure to comply with a contractual duty, which can lead to the contract's termination.

Minor Breach

A violation of a contract that does not significantly harm the intent of the agreement, allowing the contract to still be fulfilled.

Architect LLC

Refers to a limited liability company operating in the architectural sector, offering professional design services.