Which of the Following Statements Is Correct for an Entity

question 58

Multiple Choice

Which of the following statements is correct for an entity that has discontinued part of its operations during the financial year?

• A) The entity must show the profit or loss from the discontinued operation separately to the profit or loss from continued operations.
• B) The entity must include the profit or loss from the discontinued operation as part of continued operations.
• C) The entity must not show the profit or loss from the discontinued operation on the financial statements for the year.
• D) The entity must show only the profit or loss from the discontinued operation on the financial statements for the year.

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Definitions:

Intersection

A point at which two or more roads cross or intersect, or the act of intersecting.

Brakes

Mechanical devices or systems in vehicles designed to decrease or stop their motion by applying resistance.

Hypothetical Question

A question based on assumed or imagined circumstances, often used in legal contexts to explore possibilities or test theories.

Open-ended Question

A question formatted to allow a wide range of answers, encouraging detailed or explanatory responses rather than simple yes/no answers.