Regarding Discontinued Operations,which of the Following Statements Is Correct

question 7

Multiple Choice

Regarding discontinued operations,which of the following statements is correct?

• A)Gains and losses on the sale of plant assets are reported as discontinued operations.
• B)A loss on discontinued operations is reported with an addition for the applicable income tax.
• C)Most analysts include the results of discontinued operations in financial analysis.
• D)The disposal of the financing segment of a large corporation would be reported as a discontinued operation.

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Definitions:

Report The Findings

The process of documenting and communicating the outcomes of a specific analysis, assessment, or investigation to relevant parties.

Departmentalization

The process of dividing an organization into different departments, which perform specific tasks or roles, to enhance efficiency and effectiveness.

Functional

Pertains to the practical or utilitarian aspects of something, emphasizing its purpose or role rather than its aesthetics.

Produce

To create or manufacture goods or products, often on a large scale.