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:

Budgeting

A financial planning process whereby individuals or entities estimate their expected incomes and expenditures over a defined period.

Activity Variance

Activity variance calculates the difference between the planned quantity of activity and the actual quantity, analyzing the impact on costs and operational efficiency.

Direct Labor

The wages and benefits paid for the labor directly involved in the production of goods or services.

Budgeting

The method of devising a strategy for allocating your finances, detailing an entity's economic and functional objectives.