Regarding Discontinued Operations,which of the Following Statements Is Incorrect

question 113

Multiple Choice

Regarding discontinued operations,which of the following statements is incorrect?

• A) Gains and losses on the sale of plant assets and equipment are reported as Other Income and (Expenses).
• B) A loss on discontinued operations is reported with an addition for the applicable income tax.
• C) The sale of an identifiable division of the business is reported on the income statement under the category Discontinued Operations.
• D) The Discontinued Operations category of the income statement includes information about segments of the business that have been sold.

Calculate and interpret earnings per share for companies with common and preferred stock.

Understand the concept and implications of retained earnings restrictions.

Recognize the accounting treatments and implications of stock dividends and cash dividends.

Prepare journal entries for dividend declarations and payments.

---

Definitions:

Petty Cash Fund

A small amount of cash kept on hand for minor, everyday business expenses.

Replenishment

The process of restocking products or materials to maintain inventory levels and meet demand.

Internal Control Principles

Guidelines that govern the design and implementation of systems and procedures to ensure asset protection, data accuracy, and operational efficiency.

Possible Errors

Mistakes or inaccuracies that might occur in the recording or reporting of financial transactions.