Which one of the following is true concerning discontinued operations?
A)It relates primarily to product changes in a company.
B)The gain or loss associated with the disposal is shown separately as a component of continuing operations on the income statement.
C)It is reported with 'other revenues and losses' on the company's income statement.
D)One of two separate disclosures required is income or loss from the segment's operations from the beginning of the current accounting period to the date of disposal.

Question

Quizplus · Accepted Answer

Discontinued operations are reported separately on the income statement to distinguish them from continuing operations. This includes reporting income or loss from the operations of the discontinued segment from the start of the current accounting period until its disposal, as well as any gain or loss on the disposal of the segment's assets. This helps users of the financial statements to better assess the company's ongoing operations and future profitability.

Which One of the Following Is True Concerning Discontinued Operations