Which of the Following Statements Regarding Income from Continuing Operations

question 246

Multiple Choice

Which of the following statements regarding income from continuing operations is incorrect?

• A) Income from continuing operations represents the part of the business that should continue from period to period.
• B) Income from continuing operations helps investors make predictions about future earnings.
• C) Income tax expense is subtracted to arrive at income from continuing operations.
• D) A gain on sale of equipment is outside the business's core business and is not part of other income.

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Definitions:

Labor

The application of human strength and intellect in the fabrication of products and provisions.

Machines

Often represents capital goods in economics, essential for the production process in industries and affecting both the output capacity and efficiency of operations.

Short-Run Total Cost

The sum of all expenses, including both constant and flexible, associated with the production of goods or services over a short period.

Production Function

A mathematical model depicting the relationship between input factors and the output of goods or services.