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:

Voluntarily Pay

Refers to making a payment or contribution freely without coercion, typically in contexts where payments are not legally mandated.

Marginal Cost

The incremental cost of producing an extra unit of a good or service.

Rivalry

(1) The characteristic of a private good, the consumption of which by one party excludes other parties from obtaining the benefit; (2) the attempt by one firm to gain strategic advantage over another firm to enhance market share or profit.

Excludability

The characteristic of a private good, for which the seller can keep nonbuyers from obtaining the good.