When an Entity Sells During the Current Period a Non-Depreciable

question 1

Multiple Choice

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

• A) Dr Asset Cr Cash
• B) Dr Cash Cr Asset
• C) Dr Gain on sale Cr Asset
• D) Dr Asset Cr Gain on sale.

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Definitions:

Securities

Financial instruments representing some type of financial value, such as stocks, bonds, or options.

Knowledgeable Investors

Individuals or entities that possess an understanding and experience in financial and business matters, making them capable of evaluating investment risks and merits.

General Solicitation

The act of publicly advertising an investment opportunity to potential investors.

Business Combination

The merger or joining of two or more companies into one entity, often to expand market share or diversify offerings.