Discontinued operations of a component of a business are classified as a separate item in the income statement:
A) after "income from continuing operations".
B) before "income from continuing operations".
C) between income from operations and income before income tax.
D) immediately after "gross profit".

Question

Quizplus · Accepted Answer

Discontinued operations are reported separately in the income statement to distinguish them from ongoing operations, and they are presented after "income from continuing operations" to provide a clear view of the company's continuing operational performance.

Discontinued Operations of a Component of a Business Are Classified