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:

Carrying Value

The net amount at which an asset or liability is reported on the balance sheet, adjusted for factors such as depreciation or amortization.

Future Value

The value of an investment at a specific date in the future, considering compounding interest or investment returns.

Accretion Expense

Accretion expense relates to the gradual increase in the liability amount in an accretion bond or the process of asset value increase over time.

Operating Item

Expenses or revenues that arise from the primary operations of a company.