Question

The discontinued operations section of the income statement refers to:_________
a. the disposal of a significant component of a business.
b. discontinuance of a product line.
c. the income or loss on products that have been completed and sold.
d. obsolete equipment and discontinued inventory items.

Answer 1

Answer:

a. the disposal of a significant component of a business.

Explanation:

The discontinued operations refer to a portion of the company main business that have been shut down and are distinctly reported from the continiuing operations on the income statement

Now for the operating section of the income statement under discontinued operations it knows as the sale off or disposal of important part of business

Therefore the correct option is a.