A Loss from the Disposal of a Segment of a Business

question 62

Multiple Choice

A loss from the disposal of a segment of a business enterprise should be reported separately in the income statement:

• A) after cumulative effect of changes in accounting principle and before extraordinary items.
• B) before cumulative effect of changes in accounting principle and after extraordinary items.
• C) after extraordinary items and cumulative effect of changes in accounting principle.
• D) before extraordinary items and cumulative effect of changes in accounting principle.

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Definitions:

Constitutional Right

A right granted and protected by a country's constitution, often relating to individual freedoms and legal protections.

Bill of Rights

The Bill of Rights comprises the first ten amendments to the United States Constitution, guaranteeing essential rights and freedoms to American citizens.

Excessively Violent

Referring to actions that go beyond normal or accepted levels of aggression or force.

Unconstitutional Restriction

A limitation or rule that violates the principles or specific provisions of the Constitution.