Which of the Following Is Required to Be Disclosed, Pursuant

question 63

Multiple Choice

Which of the following is required to be disclosed, pursuant to GAAP?

• A) operating income or loss from discontinued component reported on the income statement
• B) a description of facts and circumstances leading up to the sale of a discontinued component within the notes of the financial statements
• C) all gains or losses from sale of the component reported on the income statement or in the footnotes
• D) All of these answer choices are correct.

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Definitions:

Acquisition

The act of acquiring control of another corporation or its assets through purchase or stock exchange.

Outstanding Stock

Shares of a corporation that have been issued and are held by investors, including public shareholders and company insiders.

Merged

The result of two or more entities combining to form a single entity, often to increase market share or efficiency.

Shares

Units of ownership interest in a corporation or financial asset, representing a proportion of the company's capital.