Which of the Following Items Would Be Reported at Its

question 98

Multiple Choice

Which of the following items would be reported at its gross amount on the face of the income statement?

• A) Extraordinary loss
• B) Prior period adjustment
• C) Cumulative effect of a change in an accounting principle
• D) Unusual gain

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Definitions:

Shale

A fine-grained sedimentary rock composed of mud that splits easily into layers, often used in the production of oil and natural gas.

Sandstone

A sedimentary rock consisting of sand-sized minerals or rock grains, compacted and often cemented together over time.

Limestone

A sedimentary rock composed primarily of calcium carbonate, often formed from marine organisms' shells and skeletons.

Granite

A rough-textured igneous rock that predominantly contains quartz, feldspar, and mica, frequently used in the construction industry.