When a Component of a Business Has Been Discontinued During

question 23

Multiple Choice

When a component of a business has been discontinued during the year,this s' component s operating losses of the current period up to the measurement date should be included in the

• A)Income statement as part of the income loss)from operations of the discontinued component
• B)Income statement as part of the loss on disposal of the discontinued component
• C)Income statement as part of the income loss)from continuing operations
• D)Retained earnings statement as a direct decrease in retained earnings

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Definitions:

Balance Sheet

A financial statement showing a company's assets, liabilities, and shareholders' equity at a specific point in time.

Total Assets

The sum of all assets owned by a company at a given time, including current, fixed, and intangible assets.

Stockholders' Equity

The residual interest in the assets of an entity after deducting its liabilities, representing the ownership interest of the shareholders.

Fees Earned

Income earned through the delivery of services.