16. When a company discontinues an operation and disposes of the discontinued operation (component), the transaction should be included in the income statement as a gain or loss on disposal reported as A) an amount after continuing operations. B) a prior period adjustment. C) an extraordinary item. D) a bulk sale of plant assets included in income from continuing operations. 17. A characteristic of generally accepted accounting principles includes: A) B) C) D) a common set of standards and principles. practices that become accepted for at least a year by all industry members. standards and principles are based a federal statutes. acceptance requires an affirmative vote of Certified Public Accountants. 18. Starr Corporation loaned $600,000 to another corporation on December 1, 2017 and received a 3-month, 8% interest-bearing note with a face value of $600 000 what adjusting entry should Starr make on December 31, 2017? A) Debit Interest Receivable and credit Interest Revenue, $4,000. B) Debit Interest Receivable and credit Interest Revenue, $12,000. C) Debit Cash and credit Interest Revenue, $4,000. D) Debit Cash and credit Interest Receivable, $12,000. 19. Neutrality means that information A) B) provides benefits which are at least equal to the costs of its preparation. can be compared with similar information about an enterprise at other points in C) D) time. would have no impact on a decision maker. cannot favor one set of interested parties over another. 20. The objective of general-purpose financial reporting is to provide financial information about a reporting entity to each of the following except A) present investors. B) potential equity investors. C) potential lenders. D) All of these answers are correct