A Loss on Disposal of a Segment Would Be Reported

question 94

Multiple Choice

A loss on disposal of a segment would be reported on the income statement as a (n)

• A) administrative expense
• B) other expense
• C) deduction from income from continuing operations
• D) selling expense

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Definitions:

Common Stock

A type of stock where the stockholders receive dividends only when the board of directors elects to issue dividends.

Dividends Totaling

The sum of dividend payments received by shareholders within a specific period.

Net Proceeds

The total amount of money received from a sale or transaction, after all expenses and costs have been subtracted.

2% Commission

A fee paid to a salesperson, broker, or agent, equivalent to 2% of the sales amount or transaction value.