MGCR 211 Lecture Notes - Current Liability, Quick Ratio, S&P 500 Index

• School: McGill University
• Department: Management Core
• Course: MGCR 211
• Professor: Karen Zajdman- Borden

Document Summary

Discontinued operation a company may sell/ dispense of business segment. Sell a division; sell or drop a product; sell a line. Results from a discontinued business that was sold well before sown separately on the income statement and will be shown net of income taxes. A business my incur a gain or loss due to extraordinary item. Very unusual, very infrequent: can create a loss or gain. 3 criteria: not expected to occur frequently, not typical of normal business activity, subject to management decisions lawsuits can be extraordinary gain or loss. Will be shown net of income taxes. 1 or 2 of the criteria exists; it is not an extra item, but rather an unusual item. Not shown net of income taxes included with other income/gains or other exp/losses. Look at all areas of the company, tells us about history of a company, try to predict/project the future. Look at relationships between figures on f/s.