Which of the following best describes the reporting for discontinued operations? Multiple Choice There are 4 criteria that must be met to classify a disposal group as held for sale. Discontinued operations presentation is used only when a component of an entity has been sold. Discontinued operations may generate future cash flows and thus there will be results of transactions related to operations the firm intends to discontinue. If the firm does generate future transactions before disposing of the disposal group, it will report that revenue in continuing operations revenue. Discontinued operations will not generate future cash flows and thus the results of transactions related to operations the firm intends to discontinue, or has already discontinued, must be reported separately from other income items on the income statement.