Which of the Following Statements Regarding Nonrecurring and Other Special

question 94

Multiple Choice

Which of the following statements regarding nonrecurring and other special items is true?

• A) Some special items, such as changes in the value of certain balance sheet accounts, are excluded from the calculation of net income.
• B) Nonrecurring items such as discontinued operations are presented above the income tax expense line on the income statement.
• C) Discontinued Operations are reported net of tax as part of the income from continuing operations.
• D) Cumulative effect of change in accounting principles is reported on the income statement as part of income from continuing operations.

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Definitions:

Flashbulb Memory

A highly detailed and vivid memory of an emotionally significant moment or event, which is retained with clarity as if it was a photograph.

Vivid

Producing powerful feelings or strong, clear images in the mind, often used to describe memories or descriptions that are very clear and detailed.

Visuospatial Sketchpad

A part of short-term memory that deals with the handling of visual and spatial data.

Executive Control System

A cognitive system responsible for planning, decision making, problem-solving, and regulating emotions and behavior.