When There Is a Disposal of a Component of an Entity

question 64

True/False

When there is a disposal of a component of an entity, the statement of income should report both income from continuing operations and income (loss) from discontinued operations.

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Definitions:

Commerce

The activity of buying and selling, especially on a large scale, involving transportation and exchange of goods and services.

Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type.

Confederation

An organization that consists of a number of parties or groups united in an alliance or league, often referring to a union of states with limited central power.

Sovereign Authority

The ultimate power or authority within a given territory, typically held by a state or monarch, over which no other power can exercise control.