Which of the Following Is a Required Disclosure in the Income

question 125

Multiple Choice

Which of the following is a required disclosure in the income statement when reporting the sale of a component of the business?

• A) The gain or loss on sale should be reported as a component of other comprehensive income
• B) Both the results of operations of the discontinued component and also the gain or loss on the sale should be reported as components of other comprehensive income.
• C) Earnings per share from both income from continuing operations and net income should be disclosed on the face of the income statement.
• D) Revenue and expenses applicable to the discontinued operations should be disclosed in the income statement.

---

Definitions:

Adaptive Traits

Features of an organism that have evolved through natural selection and increase survival and reproductive success in a particular environment.

Artiodactyls

A group of hoofed mammals that typically have an even number of toes, including cattle, pigs, and deer.

Astragalus

A genus of plants in the legume family, some species of which are used in traditional medicine.

Morphology

Refers to the form and structure of organisms.