GAAP Requires Two Items Be Shown on the Income Statement

question 28

Multiple Choice

GAAP requires two items be shown on the income statement after income tax expense.The correct order of presentation is:

• A)Extraordinary items and discontinued operations
• B)Discontinued operations and unusual items
• C)Discontinued operations and extraordinary items
• D)Extraordinary items and infrequent items

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Definitions:

Union Demands

Requests or conditions put forward by labor unions during negotiations with employers, typically regarding wages, benefits, working conditions, and job security.

Decertification Election

A legal process where workers vote to remove the representation of a labor union in their workplace, effectively ending the union's authority to negotiate on their behalf.

Track Record

The history of performance, achievements, or the reliability of an individual, organization, or product over a period of time.

Contract Expires

The moment when a formal agreement, particularly relating to employment or services, reaches its end date and is no longer in effect unless renewed.