Asked by Alexis Klein on Jun 11, 2024
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When a corporation discontinues a segment of its operations at a loss, the loss should be reported as a separate item after income from continuing operations on the income statement.
Discontinues
The process of ceasing production, support, or sale of a product or service.
Income Statement
A financial statement that shows a company's revenues and expenses over a specific period of time.
Continuing Operations
The segments or units of a business that are expected to continue operations into the foreseeable future, as opposed to those segments that are being discontinued or sold.
- Make distinctions among uncommon events, ending operations, and shifts in accounting practices, and their impacts on financial statements and analysis of operational performance.
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Learning Objectives
- Make distinctions among uncommon events, ending operations, and shifts in accounting practices, and their impacts on financial statements and analysis of operational performance.
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