Financial Accounting and Reporting Exam 1 Questions and Answers 100% Solved
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Course
Financial
Institution
Financial
Financial Accounting and Reporting
Exam 1 Questions and Answers 100%
Solved
Companies report the results of operations of a component of a business
that will be disposed of separately from continuing operations.
-True
-False - True
Revenues and gains increase both net income and owners' equi...
-Including gains and losses form discounted operations of a component of
a business in determining net income. - ✔✔Including prior period
adjustments in determining net income
The occurrence which most likely would have no effect on 2020 net
income(if all amounts involved are material) is the
-Sale in 2020 of an office building, acquired in 2001) at its book value
-Collection in 2020 of a receivable form a customer whose account was
written in 2016 by a charge to the allowance account
-Sale in 2020 of fully depreciated equipment for less than its salvage(book)
value
-None of the above - ✔✔Collection in 2020 of a receivable from a customer
whose account was written off in 2016 by a charge to the allowance
account
Which of the following is a required disclosure in the income statement
when reporting the disposal of a component of the business.
-The gain or loss on disposal should be reported as a unusual gain or loss
-Results of operations of a discontinued component should be disclosed
immediately before income form continuing operations
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