Gains and losses that are neither unusual nor infrequent are reported as:
A)A separate line item when computing earnings per share.
B)A prior period adjustment on the statement of retained earnings.
C)A gain or loss from disposing of the discontinued segment's net assets.
D)A gain or loss from operation of a discontinued segment.
E)Part of continuing operations.

Question

Quizplus · Accepted Answer

Gains and losses that are neither unusual nor infrequent are considered part of continuing operations and should be included in the income statement under the appropriate categories such as cost of goods sold, operating expenses or other income and expenses. Reporting them separately or as prior period adjustments is not appropriate as they relate to the ongoing operations of the business.

Gains and Losses That Are Neither Unusual nor Infrequent Are