When the Disposal of a Significant Business Component Occurs, the Income

question 61

Multiple Choice

When the disposal of a significant business component occurs, the income statement should report the profit (or loss) from this event as

• A) other revenue or expense.
• B) cost of goods sold.
• C) discontinued operations, before tax.
• D) discontinued operations, net of tax.

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Definitions:

Property Ownership

The legal right to possess, use, and dispose of land, buildings, or other assets.

Jacksonian Democrats

A political movement in the United States during the 1820s to 1840s that championed greater rights for the common man and was opposed to any signs of aristocracy in the nation.

Protective Tariffs

Taxes levied on imported goods to protect domestic industries from foreign competition by making imported goods more expensive.

Jeffersonian Concept

This concept pertains to the political ideals and visions of Thomas Jefferson, emphasizing democracy, agrarian simplicity, and the rights of states over centralized federal power.