When a Corporation Discontinues a Segment of Its Operations at a Loss

question 138

True/False

When a corporation discontinues a segment of its operations at a loss, the loss should be reported as a separate item before income from continuing operations on the income statement.

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Definitions:

Civil Liability

involves a legal obligation that arises in civil lawsuits as opposed to criminal proceedings, where an individual is held responsible for damages or injuries caused to another party.

Tort of Nuisance

A legal action for damages caused by a person's unreasonable use of their property, which interferes with others' rights to enjoy their property.

Trespassory Invasion

An unauthorized entry onto the property of another person, resulting in an infringement of that person's right to exclusive possession.

False Light

A concept in privacy law where an individual is publicly misrepresented in a way that could be damaging to their reputation, even if not defamatory.