When a company sells off part of the business, this would be reported on the Income Statement:
A)as a retrospective application.
B)in the discontinued operations section.
C)in the continuing operations section.
D)in the other income (expense)section.

Question

Quizplus · Accepted Answer

When a company sells off part of the business, it is reported in the discontinued operations section of the Income Statement. This section reports the financial results of a component of the business that has been disposed of or is classified as held-for-sale. The results of discontinued operations are shown separately from continuing operations to provide users of the financial statements with information about the company's ongoing business activities.

When a Company Sells Off Part of the Business, This