Which of the Following Is True Concerning Discontinued Operations

question 157

Multiple Choice

Which of the following is true concerning discontinued operations?

• A) Only the gain or loss is reported on the income statement.
• B) It must be both unusual in nature and infrequent in occurrence.
• C) Analysts would not normally include this item in making their decisions.
• D) Net income or loss from prior years must also be disclosed in the year of disposition.

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Definitions:

Government Functions

Activities and roles undertaken by government entities, including legislating, regulating, taxation, and providing public goods and services.

Special-Interest Effect

The impact or influence of special interest groups on policy-making processes, often aimed at obtaining favorable regulations or benefits for their members.

Economic Losses

The reduction in economic value due to factors such as poor investment decisions, natural disasters, or inadequate demand for goods and services.

Economic Gains

Increases in wealth or resources, often measured in terms of profit or improved well-being resulting from economic activities.