Lee's Lions had to shut down its store in Houston on July 31.This year's operating income or loss from the store before July 31 would be reported on the income statement as part of ________.
A)discontinued operations
B)extraordinary items
C)other revenues and expenses
D)income from continuing operations

Question

Quizplus · Accepted Answer

The store closure is a result of discontinuing operations, as it is no longer a part of Lee's Lions ongoing business activities. Therefore, any income or loss from the store before July 31 would be reported as part of discontinued operations on the income statement.

Lee's Lions Had to Shut Down Its Store in Houston