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:

Phototherapy

A treatment that involves the use of light to reduce jaundice in newborns or treat certain skin conditions.

Reposition

The act of placing or arranging someone or something in a new or different position.

Eye Shields

Protective devices worn over the eyes to prevent injury or shield from bright light or harmful particles.

Phenylalanine Hydroxylase

An enzyme that converts the amino acid phenylalanine into tyrosine, its deficiency can lead to phenylketonuria.