QUESTION 7 Restructuring costs: Never occurs unless there is a discontinued operation Are reported as part of other comprehensive income Are costs incurred to sell the assets of the discontinued operations Are operating expenses QUESTION 8 A firm receives a 2-year 29 bond receivable in September that was issued at PAR. What happens if the firm fails to undertake the relevant adjusting entry at the end of the year? Net income is understated Expenses are understated Liabilities are overstated Assets are overstated QUESTION 9 When a firm discovers a material crror 2 years after it occurred, It can pick either the retrospective approach or cumulative approach to correct the error. It must make corrections using the retrospective approach It must make corrections using the cumulative approach. It must make corrections using the prospective approach QUESTION 10 Which of the following is not true about held-to-maturity securities? They can be either equity or debt securities. They are bought with the intention of holding on to them until they mature. They are classified into current and non-current assets based on the maturity dates of the securities They can consist of debt securities that mature within one year of balance sheet date