In Reporting Discontinued Operations the Income Statement Should Show in a Special

question 129

Multiple Choice

In reporting discontinued operations the income statement should show in a special section
1) gains on the disposal of a discontinued component.
2) losses on the disposal of a discontinued component.

• A) 1 only.
• B) 2 only.
• C) neither 1 nor 2.
• D) both 1 and 2.

Distinguish between financial statements aimed at internal decision-making versus those for external use.

Recognize the classifications within the Statement of Cash Flows.

Understand the role of account classification and tax mapping in financial reporting.

Identify the primary objective of providing reports to users and how different reports are used for decision-making.

---

Definitions:

Checking Compulsion

A compulsion in which people feel compelled to check the same things over and over.

Nonpathological Caution

A level of prudence or vigilance that is considered normal and healthy, not indicative of a psychological disorder.

Obsessive-Compulsive-Related Disorders

A group of disorders in which obsessive-like concerns drive people to repeatedly and excessively perform specific patterns of behavior that greatly disrupt their lives.

Exposure Therapies

Psychological treatments that involve the exposure to feared stimuli or situations in order to reduce anxiety and desensitize individuals to the source of their fear.