If a company abandons a segment of its operation, the loss would be reported on the a. income statement immediately after cost of goods sold. b. income statement just before income from continuing operations. c. balance sheet in the current assets section. d. income statement immediately after income from continuing operations.

Question

Business

Lacey Ramirez

24 January, 06:14

If a company abandons a segment of its operation, the loss would be reported on the a. income statement immediately after cost of goods sold. b. income statement just before income from continuing operations. c. balance sheet in the current assets section. d. income statement immediately after income from continuing operations.

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Aspen Gross · Answer 1

d. income statement immediately after income from continuing operations.

Explanation:

We should look at what the accounting principles and normatives threatment suggest.

As the firm should firm indicate the resulf the going business the discontinued operation should be disclosure separately from it. Thus, once complete the disclosure of the continued operation the firm should post the loss on this discontinued operation