Which of the Following Is Considered a Permanent Item When

question 144

Multiple Choice

Which of the following is considered a permanent item when assessing earnings quality?

• A) a gain of the disposal of a truck
• B) a loss on the sale of a machine which had been used in operations
• C) general and administrative expenses of the corporate headquarters
• D) a gain on discontinued operations

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Definitions:

Current Value

The present worth of an asset or liability, taking into account factors such as market conditions and depreciation.

Financial Statements

Records outlining a corporation's financial health, incorporating details from the balance sheet, income statement, and cash flow statement.

Assets

Resources owned or controlled by a business that are expected to produce economic benefits.

Liabilities

Financial obligations or debts owed by a company to external parties or individuals, expected to be settled through the outflow of resources.