Doogle Corporation Sold a Segment of Its Operations in 2017

question 111

Multiple Choice

Doogle Corporation sold a segment of its operations in 2017 and suffered an loss in 2018 that was both unusual and infrequent.Which of the following would be the most useful in attempting to predict Doogle's performance for 2019?

• A)Doogle's income from continuing operations in 2017 and 2018.
• B)Doogle's net income in 2017 and 2018.
• C)Doogle's total assets at the end of 2018.
• D)Doogle's retained earnings at the end of 2018.

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Definitions:

Liquidity

The ability of an asset to be quickly converted into cash without significant loss in value, or a company's ability to meet its short-term obligations.

IFRS

International Financial Reporting Standards, a set of accounting guidelines providing a global framework for financial statements.

Commercial and Tax Law Approach

Pertains to the legal frameworks and interpretations that govern the conduct of businesses and the calculation of taxes.

Global Sources of Capital

Various international avenues and mechanisms through which businesses can secure funding for operations or expansion.