Which of the Following Statements Is True Regarding an Intra-Entity

question 94

Multiple Choice

Which of the following statements is true regarding an intra-entity sale of land?

• A) A loss is always recognized but a gain is eliminated in a consolidated income statement.
• B) A loss and a gain are always eliminated in a consolidated income statement.
• C) A loss and a gain are always recognized in a consolidated income statement.
• D) A gain is always recognized but a loss is eliminated in a consolidated income statement.
• E) A gain or loss is eliminated by adjusting stockholders' equity through comprehensive income.

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Definitions:

Risk Breakdown Structure

A hierarchical decomposition of risks into categories and subcategories, intended to organize and manage risks more effectively.

Risk Avoidance

A strategy aimed at eliminating or avoiding specific threats or risks to project or business activities.

Alternative Strategy

A plan of action designed to achieve a particular goal, which serves as a substitute or backup for the primary strategy.

Accomplishing a Task

The successful completion of a specific duty or responsibility assigned as part of a broader project or job.