Question

a discontinued operation is reported when a of an entity either (a) has been disposed of or (b) is classified as held for sale. (enter one word per blank

Answer 1

Discontinued operations, which are reported separately from continuing activities on the income statement, are divisions of a company's core business or product line that have been sold off or discontinued.

How are discontinued operations reported?

     Any component of a business's activities that is no longer necessary  

     or profitable is referred to as discontinued operations.

     Examples of operations that have been discontinued included ;

1. closure of an unsuccessful division
2. merger-related job losses
3. a product line's sale
4. discontinuing services that are no longer needed

• Even after the operations have stopped, the company's financial statements still need to include any connected income and/or expenses.Information about income statement discontinued operations is shown on a different line from ongoing operations.

• Parts of a company's operations that have been sold off or discontinued are referred to as discontinued operations in accounting.They are listed separately from continuing operations on the income statement.

• When a business shuts down an activity and sells the ceased operation (component), the transaction should be recorded as a gain or loss on disposal .

• Discontinued operations reported in the income statement, net of taxes, discontinued operations are presented separately from ongoing operations.

• On the income statement, add a new area called "Discontinued operations."

• This should appear below the section on ongoing activities, which is below the line that reads "Net income from ongoing operations."
• Closure of an unproductive division is an example of a stopped operation.merger-related redundancies a product line's sale.

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