Which of the Following Is a Required Disclosure in the Income

question 2

Multiple Choice

Which of the following is a required disclosure in the income statement when reporting a change in accounting principle?

• A)A per share amount for the cumulative effect of the change.
• B)The cumulative effect on prior years net of tax.
• C)The cumulative effect should be disclosed immediately after discontinued operations.
• D)None of these.

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Definitions:

Tenant-Days

A measure used in the real estate and hospitality sectors, representing the total number of days that tenants occupy a property.

Budgeting Formulas

Mathematical expressions or guidelines used in the process of preparing budgets to estimate revenues, expenses, and net income.

Revenue

The total amount of money generated by a company from its activities, such as sales of goods or services, before any expenses are subtracted.

Customers Served

The number of clients or customers a business has provided products or services to within a specific time period.