When an Entity Reports on a Sale of a Component

question 90

Multiple Choice

When an entity reports on a sale of a component of the business

• A)any income or loss from operations of the component should be reported in the income from continuing operations section, but any gain or loss on the sale of the component should be presented below the income from continuing operations section
• B)current operating income or loss of the component and any gain or loss on sale of the component should be presented in a separate section of the income statement
• C)any gain or loss on the sale should always be presented in the extraordinary gain or loss section of the income statement
• D)all information related to the sold component should be reported solely in the footnotes accompanying the financial statements

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Definitions:

Pregnancy Loss

The loss of a pregnancy before the fetus can survive outside the uterus, also known as miscarriage.

Amniocentesis

A medical procedure used in prenatal diagnosis, involving the extraction of a small amount of amniotic fluid for testing.

Tenth Week

A period in pregnancy, typically referring to ten weeks from the first day of the last menstrual period, marking developmental milestones in the fetus.

Pregnancy

A condition in which a woman carries a developing fetus within her uterus, lasting typically about 40 weeks from the last menstrual period to birth.