Which of the Following Statements Regarding Nonrecurring and Other Special

question 24

Multiple Choice

Which of the following statements regarding nonrecurring and other special items is true?

• A)Some special items,such as changes in the value of certain balance sheet accounts,are excluded from the calculation of net income.
• B)Nonrecurring items such as discontinued operations are presented above the income tax expense line on the income statement.
• C)Discontinued operations are reported net of tax as part of the income from continuing operations.
• D)The cumulative effect of change in accounting principles is reported on the income statement as part of income from continuing operations.

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Definitions:

Wedding Toast

A speech given in honor of the bride and groom during a wedding reception, expressing good wishes and congratulations.

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To provide enjoyment or amusement, especially through performance, storytelling, or hosting.

Hypothetical Illustrations

Scenarios or examples provided to explain a concept, which are not real but used for the purpose of explanation.

Literal Analogies

Comparisons made directly and specifically between two things that share common characteristics or relationships.