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8 Cards in this Set
- Front
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d. The operation must be sold within three months after the end of reporting period. |
Which criterion does not have to be met in order for an operation to be classified as discontinued? a. The operation shall represent a separate major line of business or geographical area. b. The operation is part of a single plan to dispose of a separate major line of business or geographical area. c. The operation is a subsidiary acquired exclusively with a view to resale. d. The operation must be sold within three months after the end of reporting period. |
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a. The entity shall disclose a single amount on the face of the income statement below the income from continuing operations |
What is the presentation of the results from discontinued operation in the income statement? a. The entity shall disclose a single amount on the face of the income statement below the income from continuing operations. b. The amounts from discontinued operations shall be broken down over each category of revenue and expense. c. Discontinued operations shall be shown as a movement on retained earnings. d. Discontinued operations shall be shown as a line item after gross income with the related tax being shown as part of income tax expense. |
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d. Depreciable assets of the component held for sale shall be depreciated |
Which statement is incorrect concerning the presentation of the discontinued operation in the statement of financial position? a. Assets of the component held for sale are presented separately under current assets b. Assets of the component held for sale are measured at the lower between fair value less cost of disposal and carrying amount. c. Liabilities of the component held for sale are presented separately under current liabilities d. Depreciable assets of the component held for sale shall be depreciated. |
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c. Include associated employee terminatlon cost |
When a component of an entity was discontinued during the current year, the net loss on discontinued operation should a. Exclude the associated employee relocation cost. b. Exclude operating loss for the period. c. Include associated employee termination cost d. Exclude associated lease cancelation cost. |
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c. Netted against the loss from operations of the component as a part of discontinued operations. |
When an entity decided to sell a business component, the gain on the disposal should be a. Presented as other income. b. Presented as an adjustment to retained earnings. c. Netted against the loss from operations of the component as a part of discontinued operatlons. d. Included in other comprehensive income. |
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a. Include operating loss of the current period. |
When a component of a business has been discontinued during the year, the loss on discontinued operations should
a. Include operating loss of the current period. b. Exclude operating loss during the period. c. Be classified an extraordinary item. d. Be classified an operating item. |
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b. Income statement as part of the loss on the discontinued operation |
When a component of a business has been discontinued during the year, the operating loss of the component for the current period should be included in a. Income statement as part of revenue and expenses. b. Income statement as part of the loss on the discontinued operation c. Income from continuing operations d. Retained earnings |
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c. An amount after income from continuing operanons and before net income. |
When an entity discontinued an operation and disposed of the discontinued operation, the transaction should be reported in the income statement as a. A prior period error b. Other income and expense item. c. An amount after income from continuing operanons and before net income. d. A bulk sale of plant assets included in some from continuing operations. |
