When a Company Discontinues an Operation and Disposes of the Discontinued

question 5

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 extraordinary item.
• C) an amount after continuing operations but before extraordinary items.
• D) a bulk sale of plant assets included in income from continuing operations.

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Definitions:

Bayley Test

A developmental scale designed to assess motor, language, and cognitive abilities of infants and toddlers.

Examiner Demonstrates

A scenario where the person administering a test or evaluation shows or exemplifies a task or behavior to a participant or subject.

Infant Intelligence

The cognitive abilities exhibited by infants, including perceptual, memory, learning, problem-solving, and language development skills.

Sensory

Relating to or involving the senses or sensation.