The loss from the disposal of a segment of a business is called:
A)an extraordinary loss.
B)other expense.
C)other loss.
D)loss on sale of discontinued operations.

Question

Quizplus · Accepted Answer

The loss from the disposal of a segment of a business is referred to as a loss on sale of discontinued operations. This is because the segment that is disposed of is no longer a part of the company's ongoing operations. The financial statement presentation for this loss is reported as a separate line item on the income statement, called the income (or loss) from discontinued operations.

The Loss from the Disposal of a Segment of a Business