Which of the Following Items Appear on the Corporate Income

question 12

Multiple Choice

Which of the following items appear on the corporate income statement before income from continuing operations?

• A) cumulative effect of a change in accounting principle
• B) income tax expense
• C) extraordinary gain
• D) loss on discontinued operations

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Definitions:

Indirectly Borrowing

Obtaining funds through an intermediary, such as by taking out a loan through a bank, rather than directly from a lender.

Bonds

Bonds are fixed-income securities that represent a loan made by an investor to a borrower, typically corporate or governmental, which pays periodic interest payments and repays the principal at maturity.

Financial Intermediaries

Institutions that facilitate the channeling of funds between lenders and borrowers.

Financial Assets

Instruments that hold monetary value, such as stocks, bonds, or bank deposits, which can be traded in financial markets.