When an Entity Reports on a Sale of a Component

question 90

Multiple Choice

When an entity reports on a sale of a component of the business

• A)any income or loss from operations of the component should be reported in the income from continuing operations section, but any gain or loss on the sale of the component should be presented below the income from continuing operations section
• B)current operating income or loss of the component and any gain or loss on sale of the component should be presented in a separate section of the income statement
• C)any gain or loss on the sale should always be presented in the extraordinary gain or loss section of the income statement
• D)all information related to the sold component should be reported solely in the footnotes accompanying the financial statements

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Definitions:

OOS Criteria

Stands for Out Of Service Criteria, which are regulations determining when a vehicle or component is considered unsafe and must be removed from service.

CVSA

The Commercial Vehicle Safety Alliance (CVSA) is an organization that promotes commercial vehicle safety and security by setting inspection standards and practices.

Fifth Wheel Pivot Pin

A pin that allows the fifth wheel plate on a tractor-trailer to pivot, facilitating the turning of the trailer.

OOS Specification

Specifications that detail the criteria under which a vehicle or component is considered Out of Service due to safety or regulatory non-compliance.