5. S1: For the results of a component of an entity to be classified as discontinued operation, management must have entered in a sale agreement.S2: The net income or net loss from discontinued operation, net of tax shall be shown as a single amount in the income statement after income from continuing operations and before net income. * A. Both statements are true B. Both statements are false C. Only statement 1 is true D. Only statement 2 is true 6. The fuel and oil as a major line of business of San Miguel Enterprises becomes available for immediate sale in its present condition. The termination costs of employees resulting from the discontinuance should be * A. Included in the computation of other comprehensive income B. Shown as other expense O c. Shown as a prior period adjustment D. Netted against the income from operations of the component as part of discontinued operation E. None of them

5. S1: For the results of a component of an entity to be classified as discontinued operation, management must have entered in a sale agreement.S2: The net income or net loss from discontinued operation, net of tax shall be shown as a single amount in the income statement after income from continuing operations and before net income. * A. Both statements are true B. Both statements are false C. Only statement 1 is true D. Only statement 2 is true 6. The fuel and oil as a major line of business of San Miguel Enterprises becomes available for immediate sale in its present condition. The termination costs of employees resulting from the discontinuance should be * A. Included in the computation of other comprehensive income B. Shown as other expense O c. Shown as a prior period adjustment D. Netted against the income from operations of the component as part of discontinued operation E. None of them

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

5. S1: For the results of a component of an entity to be classified as discontinued
operation, management must have entered in a sale agreement.S2: The net
income or net loss from discontinued operation, net of tax shall be shown as a
single amount in the income statement after income from continuing operations
and before net income. *
A. Both statements are true
O B. Both statements are false
O c. Only statement 1 is true
O D. Only statement 2 is true
6. The fuel and oil as a major line of business of San Miguel Enterprises becomes
available for immediate sale in its present condition. The termination costs of
employees resulting from the discontinuance should be *
O A. Included in the computation of other comprehensive income
B. Shown as other expense
O c. Shown as a prior period adjustment
D. Netted against the income from operations of the component as part of
discontinued operation
E. None of them

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