Which of the following statements regarding income from continuing operations is incorrect?
A) Income from continuing operations represents the part of the business that should continue from period to period.
B) Income from continuing operations helps investors make predictions about future earnings.
C) Income tax expense is subtracted to arrive at income from continuing operations.
D) A gain on sale of equipment is outside the business's core business and is not part of other income.

Question

Quizplus · Accepted Answer

The statement "A gain on sale of equipment is outside the business's core business and is not part of other income" is incorrect. A gain on sale of equipment is included in income from continuing operations as it is still considered to be part of the company's core operations.

Which of the Following Statements Regarding Income from Continuing Operations