Which of the Following Statements Is Incorrect

question 6

Multiple Choice

Which of the following statements is incorrect:

• A) Adjustments for the gain/loss on intragroup sale of property, plant and equipment are made in all periods after the sale.
• B) Where the transferred assets are depreciable, adjustments are made to depreciation accounts (for the current period depreciation) or to the retained earnings account (for the previous periods' depreciation).
• C) As depreciation reflects the use of the asset by the group, the depreciation adjustments are considered to be realising a part of the gain/loss on the intragroup sale of property, plant and equipment.
• D) As the intragroup sale of property, plant and equipment impacts on the profit and the carrying amount of assets, adjustments for the tax effects are also required.

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Definitions:

Pastoral Nomads

Groups of people who move with their herds of domesticated animals from one place to another in search of pasture, practicing a nomadic lifestyle dependent on livestock.

Herds and Crops

The management and cultivation of domesticated animals (herds) and plants (crops) for food, fiber, and other products beneficial to humans.

Food Foragers

Individuals or groups that gather, hunt, or fish for wild food resources as their primary means of sustenance.

Resource Allocation

Resource allocation involves the distribution of resources among competing groups or interests, a critical process in economics, business, project management, and within societies at large.