When the Disposal of a Significant Component Occurs the Income

question 143

True/False

When the disposal of a significant component occurs the income statement should report both income from continuing operations and income (loss) from discontinued operations.

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Definitions:

Unpaid Dividends

Dividends that have been declared by a company's board of directors but have not yet been paid out to shareholders.

Cumulative Voting

A voting system in which shareholders can allocate their votes in any proportion among candidates for a company's board of directors.

Minority Participation

Minority Participation refers to the involvement or investment in a project or company by individuals or groups who do not hold a controlling stake.

Dividend Growth Model

A valuation method used to estimate the value of a stock by assuming constant dividends that grow at a steady rate.