Where should a company undergoing reorganization report the gains and losses resulting from the reorganization?

Question

Quizplus · Accepted Answer

The gains and losses resulting from a reorganization should be reported on the income statement separately from other gains and losses, as they are not a result of regular operations. This allows stakeholders to see the impact of the reorganization on the company's profitability. The other options are not appropriate, as the statement of retained earnings reflects changes in retained earnings over a period of time, the statement of stockholders' equity reports changes in the company's equity over a period of time, and the statement of cash flows shows the sources and uses of cash during a period.

Where Should a Company Undergoing Reorganization Report the Gains and Losses