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

Question

Quizplus · Accepted Answer

When a component of a business is discontinued, its operating losses up to the measurement date should be included in the income statement as part of the income or loss from operations of the discontinued component, as per accounting standards. This will help in providing a clear picture of the financial performance of the discontinued component and its impact on the overall operations of the business. Therefore, option A is the best choice. Options B, C, and D are not relevant in this context.

When a Component of a Business Has Been Discontinued During