When a Company Discontinues an Operation and Disposes of the Discontinued

question 52

Multiple Choice

When a company discontinues an operation and disposes of the discontinued operation (component) , the transaction should be included in the income statement as a gain or loss on disposal reported as

• A) a prior period adjustment.
• B) an other income and expense item.
• C) an amount after continuing operations and before net income.
• D) a bulk sale of plant assets included in income from continuing operations.
• ^S56. Gains or losses on the disposal of investments should be shown in the income statement

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Definitions:

McDonaldization

The process by which the principles of the fast-food restaurant are coming to dominate more and more sectors of American society as well as of the rest of the world.

Stakeholder Interests

The specific concerns, goals, or desires that stakeholders (individuals or groups affected by or with an interest in a project, organization, or outcome) hold.

Competing

Engaging in an effort or stride to win or be more successful than others in a particular market, sport, or any area of endeavor.

Coordinated

Describes actions or processes that are managed and arranged systematically to achieve a specific goal or function efficiently and harmoniously.