Reporting of Discontinued Segments Includes

question 103

Multiple Choice

Reporting of discontinued segments includes:

• A)Income or loss from operating the discontinued segment net of tax and gain or loss from disposal of the segment's net assets net of tax.
• B)Extraordinary items.
• C)Changes in accounting principle.
• D)Items that are both unusual and infrequent.
• E)Writing off of receivables.

Distinguish between positive and negative externalities and their impact on social welfare.

Describe the role of consumer and producer surplus in determining market efficiency.

Recognize the effects of external costs and benefits on market outcomes and resource allocation.

Analyze the significance of the Coase theorem in resolving externality issues without government intervention.

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Definitions:

CCA Class

Pertains to a classification system for tax purposes, grouping assets with similar characteristics for capital cost allowance claims in Canada.

Net Present Value

Net present value is a financial metric that calculates the value of a series of cash flows by discounting them back to their present value using a specific rate.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and not expected to be converted into cash in the short term, like buildings, machinery, and land.

Tax Shield Approach

A method of reducing taxable income through allowable deductions such as depreciation, resulting in lower tax payments.