Which of the Following Is a Required Disclosure in the Income

question 14

Multiple Choice

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

• A) The gain or loss on disposal should be reported as an other income item.
• B) Results of operations of a discontinued component should be disclosed immediately below income from operations.
• C) Earnings per share from both continuing operations and net income should be disclosed on the face of the income statement.
• D) The gain or loss on disposal should not be segregated, but should be reported together with the results of continuing operations.

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Definitions:

Customers

Individuals or entities that purchase goods or services from a business, often considered the most critical component in the success of an enterprise.

Emotional Intelligence

The power to identify, influence, and share one's affective states, as well as to maintain social relationships with sound judgment and empathy.

Social Awareness

The ability to understand and respond to the needs of others in social situations, recognizing social cues and appropriately adapting behavior.

Self-Management

The ability to regulate one's own thoughts, feelings, and actions to achieve personal or professional goals.