Which of the Following Is Considered an Unusual Item Affecting

question 138

Multiple Choice

Which of the following is considered an unusual item affecting the prior period's income statement?

• A) a change in accounting principles
• B) fixed asset impairments
• C) sale of company stores in Florida
• D) discontinued operations

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Definitions:

Common Stock Dividend Distributable

A liability recorded on a company's balance sheet for dividends declared but not yet paid to shareholders.

Board of Directors

The Board of Directors is a group of individuals elected by the shareholders of a company to oversee the management and make major decisions.

Stock Dividend

A dividend payment made in additional shares of a company's stock instead of cash.

Cash Dividend

A distribution of earnings made by a company to its stockholders, often in the form of profits.