Discontinued Ops and Unusual Items Flashcards Preview

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Flashcards in Discontinued Ops and Unusual Items Deck (9)
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1

Disposal of a component of a business is a discontinued operation only if it represents a "_____ _____" that will have a major impact on the entity's operating results.

Strategic shift

2

Disposal of a major geographic area, line of business. or an equity method investment are considered discontinued ops. TF

True

3

EPS is not calculated on DO

False

4

All prior periods presented associated with a DO are adjusted. TF

True

5

Major classes of assets and liabilities included as a part of DO are to be classified as "held for trading". TF

False, held for sale

6

Estimated disposal gains are recognized. TF

False, only actual

7

Operating income or loss in period of decision + loss =

Discontinued Ops

8

Troubled debt restructuring is not considered an extraordinary item. TF

True

9

Write offs, write downs, gains and losses are not considered "extraordinary" for what types of items?

Accruals on LT contracts, disposals, effects of strikes, leased equipment, anything to do with foreign currency, Inventories, receivables, and sale of property