Which of the Following Is True

question 30

Multiple Choice

Which of the following is true?

• A) An extraordinary gain would increase income before taxes.
• B) Discontinued operations would be shown as a component of continuing operations on the income statement.
• C)Discontinued operations shown on the income statement will include that component's income or loss from operations from before its disposal.
• D)Results from discontinued operations may be used to predict future company results.

Understand how external benefits justify government funding in education and other areas.

Recognize the conditions under which market outcomes can be efficient in the presence of externalities.

Understand the concept of negligence and its applicability in different scenarios.

Comprehend the principles of liability in product and professional contexts.

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Definitions:

Economic Order Quantity

A formula used in operations management for determining the optimal order size that minimizes total inventory costs.

Current Ratio

A financial metric used to assess a company's liquidity by dividing current assets by current liabilities, indicating its ability to pay short-term obligations.

Break-even Point

The break-even point is the point at which total costs equal total revenue, meaning that a business or project is neither making a profit nor suffering a loss.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.