When the disposal of a significant segment occurs, the income statement should report both income from continuing operations and income (loss) from discontinued operations.

Question

Quizplus · Accepted Answer

According to the Generally Accepted Accounting Principles (GAAP), when a significant segment is disposed of, the income statement should report both income from continuing operations and income (loss) from discontinued operations. This is done to provide a more accurate picture of the company's financial performance and to identify any significant changes in the company's operations.

When the Disposal of a Significant Segment Occurs, the Income