A Loss Due to Discontinued Operations Should Be Reported on the Income

question 107

Multiple Choice

A loss due to discontinued operations should be reported on the income statement

• A) before extraordinary items.
• B) before income taxes expense.
• C) after net income.
• D) after extraordinary items.

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Definitions:

Centralization

The concentration of decision-making authority at the top levels of an organizational hierarchy.

Operational Decisions

Short-term choices made by management which are concerned with the day-to-day operations of a business.

Software Solutions

Customized or off-the-shelf computer programs designed to meet specific user needs or solve particular problems.

Centralized System

A system where control, decision-making, or important functions are concentrated in a single center or location.