When a Company's Activities Include Income-Related Events Not Part of Normal,continuing

question 8

Multiple Choice

When a company's activities include income-related events not part of normal,continuing operations,the complete income statement could potentially have the following sections:

• A)Items from continuing operations and earnings per share for a corporation.
• B)Income or loss from operating a discontinued segment for the current period.
• C)The loss from disposing of the discontinued segment's net assets.
• D)Extraordinary items.
• E)Continuing operations,discontinued segments,extraordinary items,changes in accounting principles,and earnings per share for a corporation.

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Definitions:

Socialist Economy

An economic system where the means of production, distribution, and exchange are owned or regulated by the community as a whole.

Market Failure

A situation in which the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.

Allocated Efficiently

Refers to the optimal distribution of resources and goods in a way that maximizes the welfare or utility of consumers.

External Costs

Expenses that a business or economic activity imposes on unrelated third parties or the environment, which are not reflected in market prices.