Gains and losses from sales of assets comprising a clearly distinguishable component of an entity are shown in the discontinued operations section of the income statement.

Question

Quizplus · Accepted Answer

This statement is true. According to generally accepted accounting principles (GAAP), gains and losses from sales of assets comprising a clearly distinguishable component of an entity (such as a product line or business segment) should be reported separately as discontinued operations on the income statement to provide users with information about the financial effects of the component's disposal.

Gains and Losses from Sales of Assets Comprising a Clearly