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:

Charge Customer

The process of billing a customer for goods or services provided.

Sales Discounts

A reduction in the price of goods or services offered by a seller to a buyer, usually to encourage prompt payment.

Accounts Receivable

The amount of money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Contra-revenue Account

is an account that is deducted from gross revenues to arrive at net revenue, examples include sales returns, allowances, and discounts.