An Entity That Reports a Discontinued Operation or an Extraordinary

question 16

Multiple Choice

An entity that reports a discontinued operation or an extraordinary item shall present basic and diluted earnings per share amounts for those line items

• A) only on the face of the income statement.
• B) only in the notes to the financial statements.
• C) either on the face of the income statement or in the notes to the financial statements.
• D) only if management chooses to do so as these amounts are not required to be disclosed either in the financial statements or the notes thereto.

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Definitions:

Substitute Check

A negotiable instrument that is a paper reproduction of the front and back of an original check and contains all of the same information required on checks for automated processing.

Digital Image

A representation of a visual image in a format that can be stored, viewed, or transmitted electronically.

Original Check

A document that is written, signed, and ready for use or deposit as payment.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to harmonize the law of sales and other commercial transactions across American states.