In Reporting Discontinued Operations, the Income Statement Should Show in a Special

question 18

Multiple Choice

In reporting discontinued operations, the income statement should show in a special section
1. gains on the disposal of a discontinued component.
2. losses on the disposal of a discontinued component.

• A) 1 only.
• B) 2 only.
• C) neither 1 nor 2.
• D) both 1 and 2.

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Definitions:

Deferral

An accounting practice in which the recognition of an expense or revenue is delayed to a future accounting period.

Unearned Revenue

Unearned revenue represents money received by a company for goods or services yet to be delivered or performed, also known as deferred revenue.

Theater Tickets

Tickets sold for admission to live performances at a theater, representing the purchase of the right to occupy a seat for a specified event.

Next Month's Performance

Predictive financial or operational metric projections that estimate a company's activities or financial status for the upcoming month.