Which of the Following Statements Regarding Discontinued Operations Is True

question 70

Multiple Choice

Which of the following statements regarding discontinued operations is true?

• A) The assets and liabilities of a disposal group classified as held for sale by an entity may be offset and shown as a single item on the balance sheet of the entity.
• B) The assets and liabilities of a disposal group of an entity must be shown separately in the asset and liabilities sections of the balance sheet of the entity and cannot be offset.
• C) An adjustment in a subsequent period to the selling price of a component of an entity sold must be reported as a retroactive adjustment in the prior-period financial statements of the entity in which the discontinued operation was reported.
• D) The gain or loss on disposal of a component of an entity classified as a discontinued operation need not be disclosed separately from the loss from operations of the discontinued segment.

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Definitions:

Adjusted Multiple Coefficient of Determination

A statistical measure that adjusts the coefficient of determination (R-squared) for the number of predictors in a multiple regression model, providing a more accurate assessment of the model's explanatory power.

Multiple Standard Error

The standard error calculated for multiple measurements or estimates, which quantifies the variability or precision of those measurements.

SSR

Stands for Sum of Squares due to Regression, which quantifies the variation explained by the regression model, comparing the estimated values to the mean of the dependent variable.

SST

Total sum of squares in statistical analysis, representing the total variation in the observed data relative to the mean.