A loss from the disposal of a component of a business enterprise should be reported separately as a component of income
A)Before extraordinary items
B)After extraordinary items
C)After extraordinary items and cumulative effect of accounting changes
D)Before extraordinary items and cumulative effect of accounting changes

Question

Quizplus · Accepted Answer

A loss from the disposal of a component of a business enterprise is not considered an unusual or infrequent item that would be classified as an extraordinary item. Therefore, it would be reported separately as a component of income before extraordinary items.

A Loss from the Disposal of a Component of a Business