What does continuing operations mean on the CPA exam?
Continuing operations. Everything the entity still does, as opposed to a component it has disposed of or classified as held for sale. Reported above the discontinued operations line.
Defined against ASC 205-20-45.
Which CPA exam sections use continuing operations?
Continuing operations appears in the FAR section of the CPA exam.
Related terms
- held for sale: A classification for a component the entity is actively marketing and expects to sell within a year.
- net income: What is left after every revenue and expense of the period, including tax and discontinued operations.
- net of tax: Stated after the tax effect has been taken out.
- self-employment tax: Social Security and Medicare tax paid by someone working for themselves, covering both the employee and employer halves.
- operating lease: A lease that does not transfer control.
- additional paid-in capital: Amounts received from shareholders above the par or stated value of the shares issued, reported as a separate equity caption.