When an Entity Sells a Non-Current Asset at a Profit

question 3

Multiple Choice

When an entity sells a non-current asset at a profit to another entity within the same group the following adjustment is necessary on consolidation:

• A) DR Asset, CR Cash
• B) CR Asset, DR Cash
• C) DR Gain on sale, CR Asset
• D) CR Gain on sale, DR Asset.

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Definitions:

Bioecological Theory

A theory that emphasizes the importance of multiple levels of environmental influence on individual development, originally proposed by Urie Bronfenbrenner.

Concentric Circles

Concentric circles are circles with a common center, where each circle has a different radius from the others, creating a pattern of nested circles.

Bioecological Theory

A framework for understanding human development that considers the complex interactions between individuals and their varying environments, proposed by Urie Bronfenbrenner.

Russian Dolls

A set of wooden dolls of decreasing size placed one inside another, often used metaphorically to represent complex layers of personality or nested structures.