AACSB: Reflective Thinking AICPA: FN Measurement Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-06 The distinction between special and unusual items; discontinued operations; and extraordinary items. 36. Gains or losses from the sale of property, plant or equipment would be reported on the income statement as a special item in continuing operations. TRUE AACSB: Reflective Thinking AICPA: FN Measurement Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-06 The distinction between special and unusual items; discontinued operations; and extraordinary items. 37. By definition, discontinued operations will not generate future cash thus transactions related to operations the firm intends to discontinue, or has already discontinued, must be reported separately from other income items on the income statement. TRUE AACSB: Reflective Thinking AICPA: FN Measurement Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-06 The distinction between special and unusual items; discontinued operations; and extraordinary items. 38. If a component of an entity is classified as "held for sale," its results of operations are to be reported as discontinued operations. TRUE AACSB: Reflective Thinking AICPA: FN Measurement Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-06 The distinction between special and unusual items; discontinued operations; and extraordinary items. 39. A component of an entity may be a reportable segment or operating segment, a reporting unit, a subsidiary, or an asset group. An asset group represents the highest level for which identifiable cash flows are largely independent of the cash flows of other components of the entity. FALSE As asset group represents the lowest level for which identifiable cash flows are largely independent. Reflective Thinking AICPA: FN Measurement Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-06 The distinction between special and unusual items; discontinued operations; and extraordinary items.
AACSB: Reflective Thinking AICPA: FN Measurement Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-06 The distinction between special and unusual items; discontinued operations; and extraordinary items. 36. Gains or losses from the sale of property, plant or equipment would be reported on the income statement as a special item in continuing operations. TRUE AACSB: Reflective Thinking AICPA: FN Measurement Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-06 The distinction between special and unusual items; discontinued operations; and extraordinary items. 37. By definition, discontinued operations will not generate future cash thus transactions related to operations the firm intends to discontinue, or has already discontinued, must be reported separately from other income items on the income statement. TRUE AACSB: Reflective Thinking AICPA: FN Measurement Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-06 The distinction between special and unusual items; discontinued operations; and extraordinary items. 38. If a component of an entity is classified as "held for sale," its results of operations are to be reported as discontinued operations. TRUE AACSB: Reflective Thinking AICPA: FN Measurement Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-06 The distinction between special and unusual items; discontinued operations; and extraordinary items. 39. A component of an entity may be a reportable segment or operating segment, a reporting unit, a subsidiary, or an asset group. An asset group represents the highest level for which identifiable cash flows are largely independent of the cash flows of other components of the entity. FALSE As asset group represents the lowest level for which identifiable cash flows are largely independent. Reflective Thinking AICPA: FN Measurement Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-06 The distinction between special and unusual items; discontinued operations; and extraordinary items.
Test-bank-for-Financial-Reporting-and-Analysis-Revsine-6th-Edition-by-Collins-Johnson.docx