When a Company Discontinues an Operation and Disposes of the Discontinued

question 24

Multiple Choice

When a company discontinues an operation and disposes of the discontinued operation (component) , the transaction should be included in the income statement as a gain or loss on disposal reported as

• A)a prior period adjustment.
• B)an other income and expense item.
• C)an amount after continuing operations and before net income.
• D)a bulk sale of plant assets included in income from continuing operations.

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Definitions:

Egalitarian People

Individuals who believe in the principle of equality, advocating for equal rights and opportunities for all.

Encouraging Behavior

Actions or words that promote confidence, motivation, or support in others, often aimed at fostering personal growth or overcoming challenges.

Process Skills

Pertains to the abilities required to execute and manage processes effectively, including problem-solving, decision-making, and analytical thinking.

Empowerment

Sharing power in such a way that individuals learn to believe in their ability to do the job.