Discontinued Operations, Extraordinary Items, and Gains or Losses on Sales

question 6

True/False

Discontinued operations, extraordinary items, and gains or losses on sales of plant assets are special items that must be disclosed separately on the income statement.

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Definitions:

Work In Process

Units of product that are only partially complete and will require further work before they are ready for sale to the customer.

Total Amount

The sum total of all quantities or values, usually referring to the final sum on invoices, bills, or financial statements.

Cost Reconciliation Report

A report that reconciles estimated or budgeted costs with actual costs, commonly used in project management and job costing.

Total Cost

The complete cost of producing or acquiring goods or services, including fixed and variable costs.