How is a disposal of a segment of the business reported?
A) separately stated item on the income statement
B) balance sheet
C) statement of cash flows
D) statement of retained earnings

Question

Quizplus · Accepted Answer

A disposal of a segment of the business is reported as a separately stated item on the income statement. This is because it represents a significant event that is outside of the ordinary course of business and should be reported separately to provide users of financial statements with a clear understanding of the impact on the company's financial performance.

How Is a Disposal of a Segment of the Business