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:

U.S. Dollar

The official currency of the United States, widely used as a standard of value and medium of exchange in global markets.

Foreign Exchange Market

A global marketplace for buying and selling national currencies.

Currency

The system of money in general use in a particular country, or the physical notes and coins themselves.

Short-Run Exposure

Financial risk associated with fluctuating exchange rates that affects a company's transactions or valuation in the near term.