In Reporting Discontinued Operations, the Income Statement Should Show in a Special

question 18

Multiple Choice

In reporting discontinued operations, the income statement should show in a special section
1. gains on the disposal of a discontinued component.
2. losses on the disposal of a discontinued component.

• A) 1 only.
• B) 2 only.
• C) neither 1 nor 2.
• D) both 1 and 2.

---

Definitions:

Cognitive Moral Development

A theory that explains the stages through which individuals evolve in their ability to reason morally, from basic understanding to sophisticated ethical reasoning.

Social System

An organized and interdependent constellation of institutions, groups, and norms that collectively shapes the behaviors and relationships of individuals within a society.

Duty to Society

The responsibility of individuals and organizations to act in the best interests of the community at large, contributing positively to the welfare of others.

Social Contract

A theoretical agreement within a society or between the governed and the government, defining and limiting the rights and duties of each.