A Loss on Disposal of a Segment Would Be Reported

question 141

Multiple Choice

A loss on disposal of a segment would be reported in the income statement as a(n)

• A) administrative expense
• B) other expense
• C) deduction from income from continuing operations
• D) selling expense

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Definitions:

Subsidiary Ledger

A detailed ledger that contains the individual accounts needed to support a specific general ledger account.

Accounts Payable

Liabilities of a business that are obligations to pay creditors for goods and services purchased on credit.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.

Perpetual Inventory System

A systematic approach to maintaining accurate inventory records that adjust in real-time with each purchase or sale of inventory items.