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AICPA CPA-Financial Exam - Topic 2 Question 98 Discussion

A segment of Ace Inc. was discontinued during 1992. Ace's loss from discontinued operations should not:
B) Exclude operating losses from the date the decision to dispose of the segment was made until the end of 1992.
A) Include employee relocation costs associated with the decision to dispose.
C) Include additional pension costs associated with the decision to dispose.
D) Include operating losses of the current period up to the date the decision to dispose of the segment was made.

AICPA CPA-Financial Exam - Topic 2 Question 98 Discussion

Actual exam question for AICPA's CPA-Financial exam
Question #: 98
Topic #: 2
[All CPA-Financial Questions]

A segment of Ace Inc. was discontinued during 1992. Ace's loss from discontinued operations should not:

Show Suggested Answer Hide Answer
Suggested Answer: B

Choice 'b' is correct. $120,000 expense included in the determination of net income or loss for the sixmonth interim period ended June 30, 1991.


by Louis at Sep 16, 2024, 04:42 PM

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Shalon
7 months ago
D is just standard practice, nothing surprising there.
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Annabelle
8 months ago
B is a tricky one, but I think it makes sense to exclude those losses.
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Clorinda
8 months ago
Surprised that employee relocation costs aren't counted!
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Elliott
8 months ago
I disagree, I think C should be included too.
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Lashawn
8 months ago
A is definitely correct, those costs shouldn't be included.
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Jesusa
9 months ago
I feel like operating losses up to the decision date should be included, but I’m not completely confident. I wish I had reviewed that part more thoroughly.
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Anthony
9 months ago
I practiced a similar question where we had to determine what costs to include or exclude. I think employee relocation costs might be one of those that shouldn’t be included.
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Louvenia
9 months ago
I’m a bit unsure about the timing of the losses. I think we might need to exclude losses from before the decision was made, but I can't recall the exact details.
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Mabelle
9 months ago
I remember we discussed how discontinued operations should only reflect losses directly tied to the segment's closure. I think that might rule out some costs.
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Keva
9 months ago
This is a tricky one, but I'm going to make an educated guess. I'll review my notes on discontinued operations to see if that helps me narrow it down.
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Audria
9 months ago
I'm pretty confident I know the right answer here. The question is asking what should not be included, so I'll eliminate the options that should be included.
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Arlette
9 months ago
Hmm, I'm a bit confused by the wording here. I'll need to re-read the question and options carefully to make sure I don't miss any important nuances.
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Portia
9 months ago
This seems like a straightforward accounting question, but I want to make sure I understand the key details before selecting an answer.
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Janessa
9 months ago
Okay, I think I've got it. The key is to identify what should not be included in the loss from discontinued operations. Let me think this through step-by-step.
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Willetta
1 year ago
This question is making my brain hurt more than the time I tried to balance a chemical equation. But hey, at least it's not asking about quantum physics!
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Stefanie
1 year ago
C) Include additional pension costs associated with the decision to dispose.
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Thurman
1 year ago
B) Exclude operating losses from the date the decision to dispose of the segment was made until the end of 1992.
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Daniel
1 year ago
A) Include employee relocation costs associated with the decision to dispose.
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Craig
1 year ago
Hmm, I'm leaning towards C. Additional pension costs seem like they should be part of the loss, doesn't it? Unless we're trying to downplay the whole thing.
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Leonardo
1 year ago
I'm going with D. Gotta include those operating losses up to the date of the decision, right? Otherwise, it's like sweeping the past under the rug.
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Veronika
1 year ago
Yeah, D is the way to go. It's important to include those operating losses in the calculation.
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Daisy
1 year ago
I agree, D seems like the most logical choice. We need to consider all the losses up to the disposal decision.
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Xochitl
1 year ago
I think you're right, D makes sense. We shouldn't ignore those operating losses.
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Christiane
1 year ago
Wait, are we supposed to include employee relocation costs or not? This question is giving me a headache.
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Reta
1 year ago
D) Include operating losses of the current period up to the date the decision to dispose of the segment was made.
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Clorinda
1 year ago
C) Include additional pension costs associated with the decision to dispose.
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Dan
1 year ago
B) Exclude operating losses from the date the decision to dispose of the segment was made until the end of 1992.
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Linette
1 year ago
A) Include employee relocation costs associated with the decision to dispose.
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Lisbeth
1 year ago
I think the answer is B. The operating losses from the date the decision to dispose of the segment was made until the end of 1992 should be excluded, not included.
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Garry
1 year ago
Yes, it makes sense to exclude those losses from the discontinued segment.
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Lelia
1 year ago
I agree, the operating losses during that period should be excluded.
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Chan
1 year ago
I disagree. I think the loss should include all operating losses up to the date of disposal.
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Giuseppe
1 year ago
I agree with Sherill. It should also exclude operating losses after the decision to dispose.
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Sherill
1 year ago
I think the loss should not include employee relocation costs.
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