When a Company Disposes of a Discontinued Operation (Segment), the Transaction

question 56

Multiple Choice

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

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

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Definitions:

Evidence Indicate

Suggests or shows signs of a specific situation or outcome based on the data or information gathered.

Trade-Off

The concept of giving up one benefit in order to gain another, greater benefit, highlighting the necessity of making choices between competing options.

Wage Increases

Adjustments upwards in the compensation that workers receive for their labor, often reflecting economic conditions, productivity, and negotiation outcomes.

Union Members

Individuals who belong to a labor union, an organization that represents workers' interests in negotiations with employers.