A Gain or Loss from Discontinued Operations Is Treated on the Income

question 220

Multiple Choice

A gain or loss from discontinued operations is treated on the income statement as a ________.

• A)part of regular income from operations for the period
• B)separate line item called other revenues and expenses
• C)separate line item before taxes
• D)separate line item net of taxes

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Definitions:

Inventory Turnover

A ratio indicating how often a company's inventory is sold and replaced over a period, highlighting efficiency in managing stock and sales.

Grocery Store

A grocery store is a retail establishment that specializes in selling food and other household goods.

Accounts Receivable Turnover

A financial ratio that measures how many times a company collects its average accounts receivable in a period.

Sales

The total amount of goods or services sold by a company, serving as a primary source of revenue.