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CA Inter 3b AS 24 Discontinuing Operations — practice questions

Explore 46 free 3b AS 24 Discontinuing Operations questions in CA Inter Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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3b AS 24 Discontinuing Operations questions and exercises with answers

Showing questions 1–30 of 46.

Which Indian accounting standard deals with discontinuing operations?Read the answer and worked solution →How many criteria must a component meet to be a discontinuing operation?Read the answer and worked solution →A discontinuing operation is disposed of or terminated under which kind of plan?Read the answer and worked solution →Selling a component's assets and settling its liabilities individually is calledRead the answer and worked solution →A discontinuing operation must represent a separateRead the answer and worked solution →When a component is sold in one deal, actual transfer of control may happenRead the answer and worked solution →Changing the scope of an operation is treated asRead the answer and worked solution →Closing facilities or dropping products is generallyRead the answer and worked solution →Closing a facility for cost savings does not necessarily qualify asRead the answer and worked solution →Shifting production of a line of business between locations isRead the answer and worked solution →Selling a subsidiary whose activities resemble the parent's isRead the answer and worked solution →Which segment would normally satisfy criterion (b)?Read the answer and worked solution →An enterprise with no segment reporting may treat which as a component?Read the answer and worked solution →To be distinguishable, how much of operating expenses must be directly attributable to the component?Read the answer and worked solution →Items are directly attributable to a component if they would beRead the answer and worked solution →If debt is attributable to a component, its interest isRead the answer and worked solution →Discontinuing operations are expected to occurRead the answer and worked solution →An infrequent event that is not a discontinuing operation may need disclosure underRead the answer and worked solution →Classifying a disposal as a discontinuing operation, by itself, does not question theRead the answer and worked solution →If two triggers occur, the initial disclosure event is the one that occursRead the answer and worked solution →Which is an initial disclosure event for a component?Read the answer and worked solution →A board plan triggers initial disclosure only if the board approves the plan and alsoRead the answer and worked solution →A formal plan normally states the estimatedRead the answer and worked solution →The plan is announced if its main features reach those affected, such asRead the answer and worked solution →Does AS 24 lay down its own recognition and measurement rules?Read the answer and worked solution →Impairment of assets of a discontinuing operation follows which standard?Read the answer and worked solution →Initial disclosures begin with the financial statements for the period in whichRead the answer and worked solution →Which item is part of the initial disclosure?Read the answer and worked solution →Initial disclosure of assets and liabilities uses amounts as ofRead the answer and worked solution →Which cash flows of the discontinuing operation must be disclosed?Read the answer and worked solution →

Worked practice questions

Which Indian accounting standard deals with discontinuing operations?

  1. AS 17
  2. AS 28
  3. AS 25
  4. AS 24
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Correct answer: D. AS 24

AS 24 sets out how information on discontinuing operations is reported, while AS 17 covers segments, AS 25 interim reports and AS 28 impairment.

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How many criteria must a component meet to be a discontinuing operation?

  1. Two
  2. Four
  3. Three
  4. Five
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Correct answer: C. Three

The definition has three limbs: a disposal under a single plan, a separate major line or area, and distinguishability for operations and reporting.

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A discontinuing operation is disposed of or terminated under which kind of plan?

  1. An audit report
  2. Several plans
  3. A court order
  4. A single plan
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Correct answer: D. A single plan

The definition requires that the disposal or abandonment follows one overall plan to discontinue the whole component.

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More Accounting topics

AS 3 Cash Flow StatementSchedule III Division I Financial StatementsAS 19 LeasesValuation of Inventories (AS 2)AS 22 Taxes on IncomeAS 28 Impairment of AssetsProperty, Plant and EquipmentAS 17 Segment Reporting