Which of the Following Is a Required Disclosure in the Income

question 14

Multiple Choice

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

• A) The gain or loss on disposal should be reported as an other income item.
• B) Results of operations of a discontinued component should be disclosed immediately below income from operations.
• C) Earnings per share from both continuing operations and net income should be disclosed on the face of the income statement.
• D) The gain or loss on disposal should not be segregated, but should be reported together with the results of continuing operations.

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Definitions:

Harmful Addiction

A detrimental dependence on a substance or activity that negatively impacts one's physical and mental health, relationships, and life.

Leisure Time Activities

Activities enjoyed freely outside of work and obligations, meant for relaxation, enjoyment, or personal enrichment.

Social Events

Gatherings or activities designed for the purpose of socializing, entertainment, or communal engagement.

Signs Of Addiction

Observable indicators that suggest a person may be compulsively using substances or engaging in behavior despite negative consequences.