CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Operating income from discontinued operations, and any gains or losses from their sale, are ______
A. segregated in the income statement.
B. reported after extraordinary items on the income statement.
C. not reported on the income statement but reflected in the footnotes.
Explanation: Operating income from discontinued operations, and any gains or losses from their sale, are segregated in the income statement.

User Contributed Comments 9

User Comment
bokica but, they are reported below the line... just like ext.items?
Balls why is C also not correct?
CoffeeGirl C is wrong because the discounted is reported above the extraordinary. the order is discontinued then, extraordinary, and then accounting change impact.
jerylewis I D E A
naomixs What does the I in Idea stand for? I get the rest just not the I.
Allen88 I- income from continuing operations
mattayers what's the rest of IDEA? Where did you hear that?
reganbaha -I-ncome from continuing ops.
income from -D-iscontinued ops.
-E-xtraordinary items
impact from -A-ccountancy changes
-IDEA-
chris297 Sample Income Statement

Revenue minus _______________________
- COGS |
- Operating Expense | --> Net Income from
- Unusual/ Infrequent Items | continued operations
- Financing cost |
- Income Tax Expense ________________ |
- Income from discontinued operations _____
- Extraordinary Expense ________________| --> NI from discontinued
operations
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