Question

In: Accounting

Income from continuing operations includes​ ________. A. the taking of company assets by a foreign government...

Income from continuing operations includes​ ________.

A. the taking of company assets by a foreign government

B. extraordinary losses but not extraordinary gains

C. gains and losses from discontinued operations

D. losses due to labor strikes

Solutions

Expert Solution

Continuing operations means the ongoing Operation of the company in its normal due course of business. All the expenses and income from the Operation of the business is to be taken into consideration to calculate the income from continueing Operation.

All the extraordinary losses as well as extraordinary gains are to be considered while calculating the income as even the gains are part of Operation.

Any gain or loss from discontinued operations are excluded as only the continued operation income is to be considered.

If any foreign company takes the asset of the company it means that the company is been taken over by the other company and such a transaction is not an continued operation transaction.

Losses due to labour strike are continued operation expense which are incurred in daily operations of the business as the labour plays an important role in daily operations of the company.

Therefore the correct option is D

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ekkarill92 answered 2 years ago
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