Which of the Following Statements Is Not True

question 68

Multiple Choice

Which of the following statements is not true?

• A)We report any profits or losses on discontinued operations in the current year,separately from profits and losses on the portion of the business that will continue.
• B)We report discontinued items separately,net of taxes,near the bottom of the income statement.
• C)The location where a loss is reported in the income statement does not really matter as long as the loss is reported.

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Definitions:

Overhead Applied

The allocated portion of overhead costs assigned to individual units or activities, based on a predetermined overhead rate.

Machining Department

A segment within a manufacturing facility where machining processes such as cutting, drilling, or shaping materials are carried out.

Overhead Applied

The amount of overhead costs allocated to the production of goods or services, often based on a predetermined overhead rate.

Assembly Department

A section within a manufacturing facility where assembly of the final product or parts of it takes place.