In Reporting Discontinued Operations the Income Statement Should Show in a Special

question 129

Multiple Choice

In reporting discontinued operations the income statement should show in a special section
1) gains on the disposal of a discontinued component.
2) losses on the disposal of a discontinued component.

• A) 1 only.
• B) 2 only.
• C) neither 1 nor 2.
• D) both 1 and 2.

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Definitions:

Differential Cost

The variation in overall expenses incurred from choosing one option instead of another.

Machine

An apparatus used for a specific purpose in industrial settings, commonly for manufacturing, processing, or shaping materials.

Helpline Costs

Expenses incurred in operating a support service that provides assistance to users, typically over the phone or online.

Volume

In finance, it refers to the total number of shares or contracts traded for a specific security or market during a given period.