Final answer:
Discontinued operations are presented below the income from continuing operations in the income statement, as they are not expected to recur in future periods. Restructuring costs are generally found within the operating expenses section, but may also appear under discontinued operations if they are part of a larger discontinuation strategy.
Step-by-step explanation:
An income statement is a financial report that demonstrates a company's financial performance over a specific accounting period by detailing revenues, expenses, profits, and losses. Two specific items that may appear on an income statement are discontinued operations and restructuring costs.
Discontinued operations refer to components of a business, such as a department or segment, that have been sold, abandoned, or otherwise discontinued. On the income statement, this item appears below the income from continuing operations. It is separately reported because it's not expected to recur in the future and provides users of financial statements a clearer view of ongoing operations.
Restructuring expenses associated with the reorganization of a company's operations, such as costs for reducing the workforce, relocating operations, or other major changes. These costs are typically found within the operating expenses section of the income statement if they relate directly to the core business operations. However, if restructuring is part of a larger discontinuation or realignment strategy, these costs might also be included under discontinued operations.
Understanding where these items are presented helps in analyzing the operational efficiency and one-time events affecting a company's profitability. It is essential for users of financial statements to identify and assess these items to understand better the company's ongoing source of income.