The Golden Rule Is to Be Applied When

question 2

Multiple Choice

The golden rule is to be applied when:

• A)reading the legal text we are able to give words and phrases their ordinary and natural meanings.
• B)interpreting the legal text literally would lead to a result that is absurd or inconsistent with the rest of the document.
• C)interpreting the legal text literally would be inconsistent with the purpose or object underlying the text.
• D)it is necessary to ascertain the mischief behind the text.

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Definitions:

Discontinued Operations

Parts of a company's core business or product lines that have been sold, disposed of, or abandoned and are reported separately in financial statements.

Unusual Item

A significant financial transaction or event that is rare and not expected to recur frequently, reported separately in financial statements to not distort the operational performance.

Fixed Assets

Durable physical assets employed in the running of a company, which are not anticipated to be expended or turned into cash within one fiscal year.

Disposal Of A Segment

This refers to the selling, discontinuing, or otherwise getting rid of a portion of a company's operations or divisions.