Which of the Following Statements Is True Concerning Interim Financial

question 55

Multiple Choice

Which of the following statements is true concerning interim financial reporting?

• A)An extraordinary item is defined as being material based on the relationship of the item to the interim period results.
• B)The results of a disposal of a business segment may be considered material for the interim period but not for the annual period.
• C)No income tax effect will be recognized in an interim period that incurs a loss.
• D)The income tax rate to be used for an interim period is based on an estimated income tax rate on annual income.

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A relative with whom a person shares one or more common ancestors, but typically more distant than a sibling or parent.

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Personality Dimension

A continuum along which individual differences in characteristics or behaviors can be analyzed and described.