The Gain Resulting from a Company Selling Off a Component

question 59

Multiple Choice

The gain resulting from a company selling off a component of its business is reported on the company's income statement as:

• A)an extraordinary item
• B)discontinued operations
• C)a prior period adjustment
• D)a cumulative accounting adjustment

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Definitions:

Sensory Register

The initial processing center for incoming sensory information, capturing brief impressions from each of the senses.

Short-Term Storage

The component of memory where small amounts of information can be kept for a short period of time, typically just seconds to minutes.

Information-Processing Approach

A perspective in psychology that compares human thinking processes to computer analysis, focusing on how people process, store, encode, retrieve, and manipulate information to make decisions and solve problems.

Cognitive Development

Refers to the mental processes involved in gaining knowledge and comprehension, including aspects such as awareness, reasoning, problem-solving, and judgment as they evolve throughout a person's life.