Mountain Corp $1 =$ Dividends Declared and Paid to Mountain's Shareholders

question 49

Multiple Choice

Mountain Corp. experienced the following events and transactions during 2017:
$1 =$ Dividends declared and paid to Mountain's shareholders
$2 =$ Cost of goods sold
$3 =$ Gain on disposal of a major segment of the business
$4=$ Depreciation expense
$5=$ Gain from early debt retirement
Using the numbers of the events and transactions, identify which of the following sequences is the correct order for presenting the items on the income statement.

• A)5, 1, 3, 2
• B)2, 4, 5, 3
• C)4, 5, 2, 3
• D)2, 4, 3, 5, 1

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Definitions:

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed.

Dishabituation

A renewal of response to a stimulus following a period of habituation, often due to the introduction of a novel stimulus.

Primary Circular Reaction

In Piaget’s theory, repeating an action that produced a chance event involving the infant’s body.

Mental Representations

Internal images, ideas, concepts, or thoughts that represent external reality or abstract notions within the mind.