The discontinued operations section of the income statement refers to the:
A) loss on products that did not sell.
B) discontinuance of a product line.
C) disposal of out of date equipment.
D) disposal of a segment of a business.

Question

Quizplus · Accepted Answer

The discontinued operations section of the income statement refers to the disposal of a segment of a business, which means that the company has discontinued or sold a part of the business that is not considered as a continuing operation. The other options (loss on products that did not sell, discontinuance of a product line, disposal of out of date equipment) may result in a loss or expense, but they do not necessarily relate to discontinued operations.

The Discontinued Operations Section of the Income Statement Refers to The