Which of the Following Items Appears on the Income Statement

question 47

Multiple Choice

Which of the following items appears on the income statement before profit from continuing operations?

• A)loss from discontinued operations (net of income tax)
• B)profit from discontinued operations (net of income tax)
• C)income tax expense
• D)gain on sale of discontinued operations (net of income tax)

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Definitions:

Bondholders

Individuals or entities that hold the debt securities issued by corporations or governments, known as bonds.

Gain or Loss

The financial result from a transaction when the selling price of an asset differs from its book value.

Bonds

Long-term debt securities issued by corporations and governments to raise funds, paying interest to holders.

Effective-Interest Method

An accounting practice used to amortize the discount or premium on bonds payable over the bond’s life, reflecting a constant rate of interest.