The Order of Presentation of Items That May Appear on the Statement

question 68

Multiple Choice

The order of presentation of items that may appear on the statement of comprehensive income is

• A) Other comprehensive income, Discontinued operations, Income before income taxes.
• B) Discontinued operations, Other comprehensive income, Income before income taxes.
• C) Income before income taxes, Discontinued operations, Other comprehensive income.
• D) Income before income taxes, Other comprehensive income, Discontinued operations.

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Definitions:

Depreciation

The systematic allocation of the cost of a physical or tangible asset over its useful life, reflecting the asset's consumption or wear and tear.

Indirect Expense

Costs that are not directly linked to the production of goods or services but are necessary for the business's operations, such as utilities and rent.

Building

A structure used or intended for supporting or sheltering any use or continuous occupancy.

Income Statement

A financial document that provides a summary of a company's revenues, expenses, and profits over a specified period, typically a quarter or year.