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CA Inter 3b AS 24 Discontinuing Operations — practice questions — page 2

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 31–46 of 46.

An initial disclosure event after the balance sheet date but before approval leads to disclosure underRead the answer and worked solution →On disposal of assets, what must be disclosed about any gain or loss?Read the answer and worked solution →For assets under binding sale agreements, the net selling price is stated after deductingRead the answer and worked solution →Later-period updates describe significant changes inRead the answer and worked solution →Which is an example of an event to be disclosed in updates?Read the answer and worked solution →The disclosures continue up to and including the period in whichRead the answer and worked solution →A discontinuance is completed when the plan is substantially completed orRead the answer and worked solution →If a reported plan is abandoned or withdrawn, what must be disclosed?Read the answer and worked solution →The effect of abandoning a plan includes reversal of any priorRead the answer and worked solution →Disclosures under AS 24 are presented separately forRead the answer and worked solution →Comparative figures after the initial disclosure event must beRead the answer and worked solution →Interim report disclosures on discontinuing operations followRead the answer and worked solution →AS 24 cash flow requirements apply only when the enterpriseRead the answer and worked solution →The aim of AS 24 is to separate information on discontinuing operations fromRead the answer and worked solution →Assets carried at Rs. 105 lakhs have a recoverable amount of Rs. 85 lakhs. The impairment loss isRead the answer and worked solution →Assets of Rs. 85 lakhs and liabilities of Rs. 15 lakhs give net assets ofRead the answer and worked solution →

Worked practice questions

An initial disclosure event after the balance sheet date but before approval leads to disclosure under

  1. AS 4
  2. AS 7
  3. AS 11
  4. AS 15
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Correct answer: A. AS 4

Such an event is handled through the disclosures for events occurring after the balance sheet date, AS 4.

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On disposal of assets, what must be disclosed about any gain or loss?

  1. Only post-tax amount
  2. Pre-tax amount and tax
  3. Only the buyer's name
  4. Only the sale date
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Correct answer: B. Pre-tax amount and tax

The pre-tax gain or loss and the income tax expense relating to it are both disclosed.

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For assets under binding sale agreements, the net selling price is stated after deducting

  1. Depreciation charged
  2. Income tax payable
  3. Dividends declared
  4. Expected disposal costs
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Correct answer: D. Expected disposal costs

The net selling price or range of prices is worked out after deducting expected disposal costs.

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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