Gains and losses that are normal and frequent are reported as:
A)Part of continuing operations in after-tax dollars.
B)A prior period adjustment on the statement of retained earnings.
C)A gain or loss from disposing of the discontinued segment's net assets.
D)A gain or loss from operation of a discontinued segment.
E)Part of continuing operations in before tax dollars.

Question

Quizplus · Accepted Answer

Normal and frequent gains and losses are considered part of continuing operations and are reported in the income statement in before tax dollars. This is because they are not related to any extraordinary events or transactions that are outside of the company's normal operations.

Gains and Losses That Are Normal and Frequent Are Reported