How Should a Discontinued Operation Be Presented in the Financial

question 74

Multiple Choice

How should a discontinued operation be presented in the financial statements?

• A)Summary information is presented as well as a subsequent provision of more extensive breakdowns of revenues, expenses, taxes, and financing cash flow figures.
• B)Separate discussion is not required in the financial statement notes.
• C)Presentation of separate amounts in the statement of comprehensive income, net of tax.
• D)Presentation of a single amount in the statement of comprehensive income, before tax.

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Definitions:

Financing Activities

Financing activities are transactions between a company and its creditors or investors, including issuing equity, paying dividends, and obtaining or repaying loans, which are used to fund the company's operations or expansions.

Statement Of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Cash Flow Ratio

A liquidity ratio that measures a company's ability to cover its short-term liabilities with its cash flows from operations.

Total Assets

Total Assets refer to the sum of all assets owned by a company, including both current and non-current assets, indicating the total resources at a company's disposal.