A Company That Discontinues and Disposes of an Operation (Component)should

question 17

Multiple Choice

A company that discontinues and disposes of an operation (component) should include the gain or loss on sale in the income statement as a(n)

• A)prior-period adjustment
• B)extraordinary item
• C)amount after income from continuing operations and before extraordinary items
• D)bulk sale of fixed assets included in income from continuing operations

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Definitions:

Ultimate Consumer

The end user of a product, who uses it for personal, family, or household purposes.

Retail Stores

Places of business that sell goods or merchandise directly to consumers, ranging from clothing and groceries to electronics and household items.

Quarterly Art

Art projects or exhibitions that are planned, created, or displayed on a quarterly basis.

Social Responsibility

The obligation of individuals, organizations, and businesses to act in a way that benefits society at large.