Which of the Following Items Appear on the Corporate Income

question 11

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) presentation of earnings per share
• D) loss on discontinued operations

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Definitions:

Utility Function

An economic concept representing a user's satisfaction levels with varying consumption of goods or services, ranked from less to more preferred.

Interest Rate

The slice of a loan that generates interest charges for the borrower, often cited as an annual percentage of the yet-to-be-paid loan amount.

Inflation

An economic condition characterized by a general increase in prices and fall in the purchasing value of money.

Utility Function

A mathematical representation of how different bundles of goods or services rank according to their utility (satisfaction) for an individual or entity.