The Gain or Loss on the Disposal of a Business

question 16

Multiple Choice

The gain or loss on the disposal of a business segment is shown on the income statement as:

• A)an extraordinary item.
• B)part of discontinued operations
• C)part of income from operations.
• D)other gains or losses.

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Definitions:

Serous Membrane

A serous membrane is a thin layer of tissue that lines certain internal cavities of the body, secreting a serous fluid that lubricates and reduces friction between organs.

Serous Fluid

A clear, thin fluid that lubricates the surfaces between two membranes, reducing friction from muscle movement.

Reduce Friction

A method or process of decreasing resistance between two objects or surfaces in contact, often to improve efficiency or prevent wear.

Perpendicular Orientation

A position or alignment where two lines or planes meet at a right angle or 90 degrees to each other.