When a Company Discontinues a Segment of Its Business, the Income

question 68

True/False

When a company discontinues a segment of its business, the income statement should report income (loss)from continuing operations and income (loss)from discontinued operations.

---

Definitions:

Requirements

Specific criteria or conditions that must be met in order to fulfill an agreement or complete a project.

Bearer Instrument

A bearer instrument is a type of document that allows the holder to claim the rights or assets it represents without endorsing or proving ownership.

Order Instrument

A financial document that is payable to a specified person or entity, such as a check, which requires endorsement for cashing or deposit.

Endorsed

Officially approved or supported, or signed on the back to transfer ownership or to show agreement.