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:

Oedipus Complex

A Freudian theory proposing that a child feels a subconscious sexual attraction to the opposite-sex parent and hostility toward the same-sex parent.

Defense Mechanisms

Psychological strategies employed unconsciously to protect oneself from anxiety arising from unacceptable thoughts or feelings.

Repression

A defense mechanism where stressful thoughts or memories are unconsciously pushed out of conscious awareness.

Freud's Concept

Theoretical ideas proposed by Sigmund Freud, focusing on the unconscious mind, the importance of childhood, and the structure of personality into ego, id, and superego.