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A Company That Reports a Discontinued Operation or an Extraordinary

question 162

True/False

A company that reports a discontinued operation or an extraordinary item must also report earnings per share for each of these line items in the notes to the financial statements.


Definitions:

Voting Structure

The method or system used to carry out the process of voting or making decisions within an organization or a country.

Economic Efficiency

The optimal distribution of resources in a society, minimizing waste and maximizing value.

Government Failure

A situation in which the structure of incentives is such that the political process, including democratic political decision-making, will encourage individuals to undertake actions that conflict with economic efficiency.

Market Failure

A situation in which the structure of incentives is such that markets will encourage individuals to undertake activities that are inconsistent with economic efficiency.

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