Which of the Following Items Would Not Be Reported on a Net-Of-Tax

question 101

Multiple Choice

Which of the following items would not be reported on a net-of-tax basis in an entity's financial statements?

• A)a revision in the remaining useful life of depreciable equipment, which is accounted for as a change in accounting estimate
• B)a gain arising from the sale of a component of the business
• C)an adjustment to the financial statements that is accounted for as a prior-period adjustment
• D)a loss that qualifies as an extraordinary item

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Definitions:

Millions

A numeral term signifying a thousand thousands, or 1,000,000 units of a given quantity.

Alkaline Substances

Alkaline substances are compounds that have a pH level greater than 7, indicating a basic property as opposed to acidic.

River Water

Water found in rivers, which is often a source of freshwater for communities, agriculture, and ecosystems.

Potassium

A chemical element with symbol K, essential for the functioning of all living cells, and a major component in plant nutrition.