Which of the Following Is a Required Disclosure in the Income

question 59

Multiple Choice

Which of the following is a required disclosure in the income statement when reporting the sale of a component of the business?

• A)The gain or loss on sale should be reported as an extraordinary item.
• B)Results of operations of a discontinued component should be disclosed immediately below extraordinary items.
• C)Earnings per share from both income from continuing operations and net income should be disclosed on the face of the income statement.
• D)Revenue and expenses applicable to the discontinued operations should be disclosed in the income statement.

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Definitions:

Defensiveness

A psychological reaction characterized by the refusal to accept criticism or suggestions, often resulting in a defensive posture or arguments to protect one's ego.

Johari Window

A psychological tool used to help people better understand their interpersonal communication and relationships. It divides personal awareness into four quadrants: open, hidden, blind, and unknown.

Unknown Area

A concept or location that is not known or familiar.

Sincere Trust

A genuine and heartfelt confidence in the reliability, truth, ability, or strength of someone or something.