Answered: If a company reports discontinued…

If a company reports discontinued operations, EPS must be disclosed for both income from continuing operations and net income. True or False

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Related questions

Q: What is the impact on A Company financial statements if the company forgets to recognize that…

A: Unearned Revenue - Unearned Revenue is the revenue which is not earned by the company but amount…

Q: What is the concept of going concern? elect one answer: Understating the assets and revenues and…

A: An assumption or condition under which the transactions of a business entity are recorded is…

Q: A business entity is required to maintain the same accounting policies. However, the entity is…

A: Accounting policy: It is a specific principle, guidelines rule, system applied by firms when they…

Q: If a company registered with the SEC justifies a change in accounting method as preferable under the…

A: Securities Exchange Commission (SEC): This is the government agency governs the working of financial…

Q: Briefly discuss under what circumstances a company may be wound up. 2. ) If an event occurs ‘after…

A: Winding up usually involves dissolving of a company. It involves activities such as selling off…

Q: Which of the following is not a form of earnings management?

A: Earnings management, on the other hand, refers to the use of legitimate accounting methods to…

Q: What are the disclosure requirements for a correction of an accounting error?

A: An accounting error refers to a mistake or inaccuracy in financial records, statements, or reporting…

Q: Recording of next year's purchases as purchases of the current year will O understate net income of…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: A company is required to report a liability on its balance sheet when it expects to lose a lawsuit…

A: The accounting principal of conservatism states that all losses should be recorded but uncertain…

Q: I only С. Both I and II а. II only d. Neither I nor II

A: Answer is 'A'

Q: Provide an argument explaining why expenses that were inadvertently omitted in a previous year…

A: The argument against this approach follows AASB 108 (Australian Accounting Standard Board-108) which…

Q: If it is material, which of the following does not require all prior reported financial statements…

A: IAS 8 prescribes the criteria for change in accounting estimates, accounting policies and errors. It…

Q: Under SFAS 130, Reporting Comprehensive Income, corrections of errors are reported in

A: Correction of error includes rectify the wrong entry recorded in previous year or year before that.…

Q: Which one of these statements about the accrual-basis of accounting is false? This basis is in…

A: Cash basis of accounting recognize the expenses or revenues when they are paid or received. Accrual…

Q: The following legal claims exist for a company. Identify the accounting treatment for each claim as…

A: A probable loss that can be reasonably estimatable should be recorded as a liability in the books of…

Q: TRUE OR FALSE 1. If beginning inventory of prior year is understated, retained earnings is…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: does a cancellation of a service affect the companys balance sheet or book value?

A: Cancellation of service affect the company's balance sheet or book value : Some of the contracts…

Q: When it is difficult to distinguish a change in accounting policy from a change in an accounting…

A: Accounting policies are the particular principles as well as procedures which are executed through…

Q: The accounting cycle differs depending on whether a company uses IFRS or ASPE accounting standards.…

A: The International financial reporting standards(IFRS) and Accounting standards for Private…

Q: Statement 1 : Expenses associated directly with revenue are matched against revenue in those interim…

A: The revenue recognition principle could be a cornerstone of accumulation accounting alongside the…

Q: Companies are required to report which of the following known liabilities Unearned Revenue OPayroll…

A: Current Liabilities - Current Liabilities are the amount due to the company. But Company has not…

Q: A company is permitted to recognize revenue over a period of time? O True O False

A: Solution- Revenue is recognize when seller transferred control of goods or services to customers .…

Q: Under GAAP, companies are permitted to recognize bad debt expense based on estimated bad-debt losses…

A: The company makes cash as well as sales on account. The bad debt expenses represent the estimated…

Q: According to the accrual accounting model, recognition of loss leads to decrease in a company’s net…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Discuss how a change in accounting policy is handled when it is impracticable to determine previous…

Q: Management can estimate the amount of loss that will occur due to litigation against the company. If…

A: Contingent liabilityThe liability incurred at certain cases due to the happening that cannot be…

Q: Under functional presentation of income statement an entity a. Shall not present additional…

A: Financial statement means the statement including income statement , balance sheet , cash flow…

Q: Choose the incorrect statement below: A. An entity shall select and apply different accounting…

A: As per IAS 8, Accounting Policies, Changes in accounting estimates and Errors, An accounting policy…

Q: Corrections of significant errors of past periods are charged or credited directly to the Retained…

A: Retained earnings comes under the head liabilities in the balance sheet .

Q: A certain contingent liability was evaluated at year-end, and considered to have a reasonable…

A: Contingent liabilities are the liabilities that may or may not be happened in the future and it…

Q: What accounting principle requires that revenues, and the related costs incurred to generate those…

A: Revenue: It is the amount of money earned by an entity by selling goods or providing…

Q: Under clean-surplus accounting, a statement of common shareholders' equity has no income other than…

A: According to the clean surplus accounting idea or concept, equity-related profits and losses should…

Q: If a company estimates that it is "reasonably possible" that it will lose a significant amount in a…

A: Part 2: Explanation:Step 1: Understand the Nature of Contingent Liabilities:Contingent liabilities…

Q: Which of the following statements concerning when a company announces it is discontinuing a business…

Q: When a component of a company's operations is classified as held for sale at the end of an…

A: When a component of a company's operation is classified as held for sale at the end of an accounting…

Q: Indicate whether the following statement is true or false. At the end of the financial year, the…

A: The difference between direct revenue and costs is the gross profit/loss. The Trading account is set…

Q: Help me answer this ty

A: Notes to the financial statements: It shall present information about basis of preparation of…

Question

If a company reports discontinued operations, EPS must be disclosed for both income from continuing operations and net income. True or False True False

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Correct Answer

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Why do companies sometimes report non-GAAPresults?
1(a) State with reason whether the following statements are true or false (i) Change in Method of Depreciation is regarded as change in Accounting Policy of the entity. (ii) Depreciation is non-cash and non- operating expense which is to be provided for whether there are profits/losses. (iii) Net Profit is reflected in higher cash balances and net loss is reflected in lower net worth. (iv) Contingent liability is an ascertained liability but its amount and due date are indeterminate. (v) Fundamental Assumptions are always required to be disclosed in the financial statements.
Accounting data does not consider off-balance sheet items, such as unused commitments of a firm. O True O False
If the statement of financial position error is discovered in a subsequent accounting period, what action is to be done by the entity? A. Reclassify the item to its proper real account but do not restate the statement of financial position of the prior year affected by the error. B. Reclassify the item to its proper real account. C. Restate the statement of financial position of the prior year affected by the error. D. Reclassify the item to its proper real account and restate the statement of financial position of the prior year affected by the error
Define earnings persistence. How does earnings persistence relate to the reporting of discontinued operations?
Under what condition should a pending lawsuit be recognized as a liability on a company's balance sheet? Multiple Choice The outcome is probable and can be reasonably estimated. The amount can reasonably estimated. The outcome is probable. The outcome is reasonably possible.
describe the fi nancial reporting treatment and analysis of non-recurring items (including discontinued operations, extraordinary items, unusual or infrequent items) and changes in accounting standards
According to IAS 8, how should prior period errors that are discovered in a subsequent reporting period be recognized in the financial statements? a. As an adjustment to beginning retained earnings for the reporting period in which the error was discovered. b. As a note in the financial statements that the error was previously made but has since been corrected. c. In the statement of comprehensive income. d. Retroactively for all periods presented.
Please answer the following question(s): Sometimes a business entity will change its method of accounting for certain items. The change may be classified as a change in accounting principle, a change in accounting estimate, or a change in reporting entity. Listed below are three independent, unrelated sets of facts relating to accounting changes. Situation I: A company determined that the depreciable lives of its fixed assets are presently too long to fairly match the cost of the fixed assets with the revenue produced. The company decided at the beginning of the current year to reduce the depreciable lives of all of its existing fixed assets by five years. Situation II: On December 31, 2020, Gary Company owned 51% of Allen Company, at which time Gary reported its investment on a nonconsolidated basis due to political uncertainties in the country in which Allen was located. On January 2, 2021, the management of Gary Company was satisfied that the political uncertainties were resolved…
Star Company has a contingent liability that has a likelihood of actual occurrence that is classified as probable. Also, the amount of the liability can be reasonably estimated. Under these circumstances, Star is required to Multiple Choice O recognize a liability only. disclose but not recognize the liability or the expense. recognize a liability and an expense in its financial statements. recognize an expense only.
Which of the following statements regarding the consistency concept is not true? Select one: A. The objective of the consistency concept is to facilitate comparison between one period and another B. A selected accounting method must be used consistently every year C. A company cannot change the selected accounting method once it is used D. If inconsistency is found, the company must provide full explanation in the Statement of Profit or Loss and Other Comprehensive Income itself, or in the Statement of Financial Position, or in the notes to the accounts

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS