Question

Current GAAP requires that the net gain or loss from a settlement or curtailment be included in the:

a) Accumulated other comprehensive income
b) Comprehensive income
c) Income from continuing operations
d) Retained earnings

Answer 1

The correct answer is Income from continuing operations.

Step-by-step explanation:

The correct answer is c) Income from continuing operations.

According to Generally Accepted Accounting Principles (GAAP), the net gain or loss from a settlement or curtailment should be included in the Income from continuing operations section of the financial statements. This section represents the ongoing revenue and expenses of the business, excluding any extraordinary or non-recurring items.

This treatment ensures that the gains or losses from settlements or curtailments are reflected in the company's core operations, providing a more accurate representation of its financial performance.