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:

Wood

A hard, fibrous material forming the trunk and branches of trees or shrubs, used for construction, fuel, and as a raw material for many products.

Sharp Piece

A fragment or object with a pointed or edged part capable of cutting or puncturing.

Gasoline

A flammable liquid derived from petroleum, used primarily as fuel in internal combustion engines.

Space Heaters

Portable devices used to heat a specific area or room, providing warmth using electrical or another fuel source.