When the Disposal of a Significant Component Occurs, the Income

question 19

True/False

When the disposal of a significant component occurs, the income statement should report income from continuing operations but not income (loss) from discontinued operations.

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Definitions:

Board Of Directors

A group of elected or appointed members who jointly oversee the activities of a corporation or organization.

Par-value

The nominal or face value assigned to a share of stock by the company's charter, not necessarily reflecting its market value.

Actual Value

The true or fair market value of an asset or property, as opposed to its estimated or perceived value.

Indebtedness

A financial condition in which an individual or organization owes money to another party.