CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

For discontinued operations, ______
A. income from operations and any gain or loss on disposal are reported as operating items on the income statement.
B. income from operations and any gain or loss on disposal are reported as non-operating items on the income statement.
C. income from operations is reported as an operating item and any gain or loss on disposal is reported as a non-operating item on the income statement.
Explanation: Income from discontinued operations and any gain or loss resulting from its disposal are both reported as non-operating items on the income statement. This is in accordance with GAAP, to make it easier to evaluate the ongoing activities of the business.

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