Question:
What transactions are included in income from continuing operations? Briefly explain why it is important
to segregate income from continuing operations from other transactions affecting net income.
Answer:
Income from continuing operations includes the revenue, expense, gain, and loss transactions that will
probably continue in future periods. It is important to segregate the income effects of these items because
they are the most important transactions in terms of predicting future cash flows.
What transactions are included in income from continuing operations? Briefly explain why it is important
to segregate income from continuing operations from other transactions affecting net income.
Answer:
Income from continuing operations includes the revenue, expense, gain, and loss transactions that will
probably continue in future periods. It is important to segregate the income effects of these items because
they are the most important transactions in terms of predicting future cash flows.
