When a Company Sells a Segment of Its Business, the Gain

question 29

Multiple Choice

When a company sells a segment of its business, the gain or loss on the disposal of the segment is shown as:

• A) other gains or losses on the income statement
• B) part of the discontinued operations section on the income statement
• C) an extraordinary item appearing on the income statement
• D) an adjustment to the beginning balance of retained earnings

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Definitions:

Confederates

Individuals who are part of a study's design but pretend to be participants, aiding in creating specific conditions for the actual participants' reactions.

Bystanders

People who are at a scene or occurrence yet do not participate.

Crisis Situation

A significant and often sudden event or condition that requires immediate attention and action to protect life, property, or the environment.

Pressure

The psychological experience produced by urgent demands or expectations for a person’s behavior that come from an outside source.