Assets and Liabilities of a Discontinued Operation That Are Held

question 92

Multiple Choice

Assets and liabilities of a discontinued operation that are held for sale are reported

• A)separately on statement of financial position.
• B)at higher of their carrying amount or fair value.
• C)at lower of fair value or cost.
• D)separately on the statement of comprehensive income.

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Definitions:

Inventory Valuation

Inventory valuation is a process of determining the monetary value of a company's inventory at the end of a reporting period, based on the cost or market value.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases minus cost of goods sold.

Stockholders' Equity

The portion of a company's capital that belongs to the shareholders, calculated as the total assets of a company minus its total liabilities.

Average Inventory

An accounting measure that calculates the average value of inventory over a certain period of time to help assess inventory levels.