Discontinued operations:
a. required disclosure for publicly traded corporations
b. component of the entity has been sold or will be sold
c. costs generally associated with downsizing
d. reports a series of intermediate subtotals
e. accounted for prospectively
f. tangentially related to normal operations
g. accounted for retrospectively by revising prior years' statements
h. other comprehensive income
i. total non-owner change in equity
j. ability of reported income to predict future earnings
Ans: b. component of the entity has been sold or will be sold
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Why is accounting conservatism NOT a basic principle underlying accounting standards in the People's Republic of China?
A. It is perceived to manipulate accounting numbers for the benefit of owners by exploiting workers. B. It too closely reflects the views of the masses, which are not considered in establishing accounting standards. C. Conservatism has been shown to cause economic hardship for companies operating in China. D. Conservatism overstates assets, which is perceived to distort financial results.
Not taking account of the fact that information from some sources may be unreliable can threaten the credibility of conclusions drawn from quantitative analysis.
a. true b. false