When an Acquiree Disposes of a Business, the Gain or Loss

question 20

Multiple Choice

When an acquiree disposes of a business, the gain or loss is recognised in:

• A) retained earnings
• B) revaluation surplus
• C) the statement of profit or loss and other comprehensive income
• D) capital profits

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Definitions:

Buying Property

The act of acquiring ownership over a plot of land or a building, typically through a purchase agreement and legal transfer of title.

Ku Klux Klan

A white supremacist hate group in the United States known for promoting racism, anti-Semitism, and violence against African Americans and other minority groups.

Sexual Assault

Any non-consensual sexual contact or behavior, a serious crime that can have profound psychological effects on the survivor.

Jim Crow

Refers to the state and local laws in the United States, particularly in the South, that enforced racial segregation and discrimination against African Americans from the late 19th through the mid-20th century.