A Loss Due to a Discontinued Operation Should Be Reported

question 153

Multiple Choice

A loss due to a discontinued operation should be reported on the income statement

• A) above income from continuing operations
• B) without related tax effect
• C) below income from continuing operations
• D) as an operating expense

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Definitions:

Professional Investors

Individuals or entities that earn a living by managing and investing in various securities and asset classes on behalf of themselves or others.

Institutional Investors

Entities such as pension funds, insurance companies, and mutual funds that invest large sums of money on behalf of individuals.

Precious Metals

Metals of high economic value such as gold, silver, platinum, and palladium, often used in jewelry, industrial applications, and as investment.

Dividend-payout Policy

A company's approach to distributing earnings to its shareholders, either in the form of cash dividends or stock repurchases.