Which of the following is true?
A) An extraordinary gain would increase income before taxes.
B) Discontinued operations would be shown as a component of continuing operations on the income statement.
C)Discontinued operations shown on the income statement will include that component's income or loss from operations from before its disposal.
D)Results from discontinued operations may be used to predict future company results.

Question

Quizplus · Accepted Answer

Discontinued operations shown on the income statement will include that component's income or loss from operations from before its disposal. This is because the purpose of showing discontinued operations separately is to provide investors with information about the financial impact of the component that is no longer part of the company's ongoing operations. Including income or loss from before disposal provides a better understanding of the financial performance of the component before it was discontinued.

Which of the Following Is True